Does Accumulation IUL offer rolling targets?
Yes, Accumulation IUL supports rolling targets, a feature designed to protect your commission if a client does not pay the full target premium during the first policy year.
Note on availability: Rolling targets apply starting in Year 2. For the newest policies issued in early 2026, this feature will become relevant as those policies enter their second year in 2027.
How rolling targets work
In a traditional IUL, if a client fails to pay the full target premium in Year 1, the agent typically loses the chance to earn the higher target-level commission on the unpaid premium. With Accumulation IUL’s rolling target, that shortfall carries forward into Year 2 (and Year 3 if not fully paid in Year 2). This ensures that as the client continues to fund the policy, the agent captures their full target-level commission.
Example scenario:
- Year 1 Target Premium: $10,000
- Actual premium paid in Year 1: $8,000
- The shortfall: $2,000
In this case, the $2,000 shortfall rolls over into Year 2. When the client makes their next payment, the first $2,000 collected will be compensated at the higher Year 1 target commission rate rather than the lower renewal rate. This ensures you are fully compensated for the initial sale, even if the client funds the policy more slowly than expected.
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