Definitions for "Cost of Insurance"
This is the insurance company's cost to provide the death benefit, depending on the insured's age and health. C.O.I. is a fixed price per thousand dollars of insurance, e.g., "$3.48 per thousand."
The cost of insurance rate charged on the difference between the death benefit and account value, also known as the net amount at risk. The cost of insurance rate is set to cover more than the cost of providing the death benefit. The cost of insurance rate helps cover administrative costs, taxes, and other expenses. The cost is deducted from the account value monthly.
Calculated as unit of insurance times the number of units purchased.