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.
Also referred to as a premium, it is the amount you will pay for your life insurance policy. The cost of life insurance varies by age, sex, health, lifestyle, vocation and occupation. Health problems and dangerous hobbies – such as SCUBA diving, private flying, bungee jumping, parachuting, etc. – may increase the cost or may not allow for insurance coverage.
The amount a policy owner pays to an insurer, minus what he or she gets back from the insurer. This expression is used when determining the true cost of permanent forms of Life Insurance to a policy owner. It considers the fact that premiums are paid in but also that an actual cash value is being built up, which is the portion that the insured will get back from the insurance.
Generally applicable to current assumption policies such as equity indexed, variable and universal life, cost of insurance charges are monthly charges for mortality and other elements of insurer expense that are assessed against the policy based on the insured's current age, the original rate class, and the current net amount at risk.
The total premium outlay paid for a potential death benefit from a life insurance policy. On an annual basis, the policyowner may consult a government publication, P.S. 58 tables, or, if available, the annual renewable term rates from the carrier for the “pure” insurance cost at each attained age. | | | B-C | | C-D | D-E | E-F | F-G | G-H | H-I