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Example: Milestone-Based Billing Schedule Generation
This example illustrates how milestone-based billing schedules are generated during policy issuance using inherited and overridden billing treatments.
A policy includes two coverages:
- Dental coverage
- Term premium: 2,400
- Vision coverage
- Term premium: 1,200
- Term fee: 120
The billing treatment configuration is as follows:
- A 60/30/10 billing treatment is defined at the policy level.
- The Vision coverage is not explicitly associated with a billing treatment and therefore inherits the 60/30/10 split from the policy header.
- The Dental coverage is explicitly associated with a 50/30/20 billing treatment and overrides the policy-level configuration.
As a result:
- Vision premium and fee amounts are billed using the 60/30/10 milestone structure.
- Dental premium amounts are billed using the 50/30/20 milestone structure.
Generated Billing Schedules
Vision Coverage
- Total Amount: 1,200
- Billing Treatment: 60/30/10
| Milestone | Percentage | Amount | Billing Schedule Date |
| Down Payment | 60% | 720 | January 6 |
| Installment 2 | 30% | 360 | February 1 |
| Installment 3 | 10% | 120 | July 1 |
Dental Coverage
- Total Amount: 2,400
- Billing Treatment: 50/30/20
| Milestone | Percentage | Amount | Billing Schedule Date |
| Installment 1 | 50% | 1,200 | January 6 |
| Installment 2 | 30% | 720 | February 1 |
| Installment 3 | 20% | 480 | July 1 |
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