Rule of 78 and 108
Updated
The Rule of 78/108 page shows how much of your Life and Health premium counts toward this year, month by month, and how much of it lands next year.
The two rules, as this page uses them
On the Rule of 78 tab, a Life policy credits one twelfth of its annual premium every month for 12 months, starting the month it is issued. On the Rule of 108 tab, a Health policy pays half its annual premium when it issues and the other half six months later.
So the issue date, not the premium, decides how much of a policy counts this year.
Open it
Open Rule of 78/108 from the menu. The owner can open it, and so can a Custom member when Rule of 78 / 108 is ticked in their permissions. A Basic member cannot.
The page has three controls:
- The two cards at the top, Rule of 78 and Rule of 108, switch between Life and Health.
- The arrows beside the year move one year at a time, up to the current year.
- Include written, not yet issued adds sales that have no issue date yet. The number beside it is how many it would add.
There is no choice of person or product line and no policy-count view. The page is the whole office, in premium dollars.
The page, top to bottom
The page opens with the rule in one sentence. The link at its end, How credits work on the Life tab, opens a worked example and the three words used below: Received, Scheduled and Carryover.
Next is the equation: Credits received plus Scheduled equals Full year and the year. On the Health tab the headings say payments in place of credits, so the first box reads Payments received. With a premium goal set, the total shows its percent of goal, marked Behind under 90 percent, and a fourth box holds the goal and the gap. The line below gives the carryover into next year.
In the goal box, Pace & what it takes › unfolds your pace so far, ending in Year-end at this pace, and what the goal takes: Current gap, New premium needed and New policies needed. Open the pace projection › opens a window with a bar for each month. A finished year has no pace.
Credits landing by month has a bar for each month, split between last year's policies and this year's, and faded where still scheduled. Hover a month for the amounts and the policy count.
Running total vs goal adds the months up: darker to today, lighter to December 31. A dot marks what has been received, and a goal line appears when a goal is set.
Credits by issue month is the table: a row for each month in which policies issued, with Issue month, Policies, Total premium, then received, scheduled and carryover. The strip at the end has a block for each credit: last year, received, scheduled or next year. Click a row for its policies. Details › opens one policy's schedule, with View in Sales Log.
What to take from it
A Life policy issued in January credits all 12 months this year, and one issued in December credits one. A Health policy issued by June pays both halves this year, and one issued later pays only the first. That is why, late in the year, the page asks for much more new premium than the gap.
What the numbers mean
- Total premium: each policy's issued premium, or its written premium when none is recorded, added up.
- Received: credits dated today or earlier, from issued policies.
- Scheduled: credits dated after today and by December 31. With the switch on, every credit this year from a policy that has not issued counts here, placed from its written date.
- Full year: Received plus Scheduled. A finished year reads Final total.
- Carryover: credits from this year's policies that land next year. It is not in this year's total.
- Goal: the product's Premium ($) goal for the year, on Office Goals in Settings, Goals tab. The gap is the goal less the full-year figure.
- New policies needed: the gap divided by what an average policy would still credit this year.
- A chargeback stops a policy's credits from the chargeback date on.
What the page does not read
- Sales in any product line other than Life and Health.
- A policy issued before January 1 of the year before the one on screen.
- The numbers typed in the Data window, your leads or your activity.
- Commission plans or Payouts. The credits here are premium, not pay.
Frequently Asked Questions
Why is a policy missing from the page?
Most often it has no issue date. Turn on Include written, not yet issued, or add the issue date in the sales log. A sale marked Will not issue stays off the page.
Why is there no goal box or pace link?
No premium goal is set for that product and year. Add a Premium ($) goal for Life or Health and both appear.
Does the page multiply anything by 78 or 108?
No. The numbers name the two tabs. The sums are 12 monthly credits for Life and two payments for Health.