What are Net and Gross Points?

What are Net Points?

A Member’s Net Points is defined as the sum of a person’s total points (both positive and negative) as transmitted to The Company by our product providers.

What are Gross Points?

A Member’s gross points are all positive points and could consist of negative points created from an internal correction.

What is Net Point Ratio (NPR)?

  • A Member’s Net Point Ratio is defined as net points divided by his/her gross/positive points. This calculation provides a general comparison of the ratio of total submitted business to that which is issued and in-force.
  • Net/Gross = Net Point Ratio percentage.

Net Point Ratio is not the same as “persistency” and cannot be compared to product provider persistency.  Limited scenarios exist that may negatively impact net point and net points ratios and are usually members with how our providers submit payout data to The Company.  The most common of these scenarios include:

  • Policy reissues (for whatever reason)
  • Changes in life policy face amounts
  • Repaid payout transactions that result in a shift in the number of VP generations paid

Since the Company relies on the policy information sent to us by our product providers, the scenarios described above will arise from time-to-time.  As the Company does not maintain the policy data on individual sales, The Company must trust the information that we receive from our product providers to issue payouts and points.