The cost of the insurance protection based on a statistical projection of future deaths.
The cost of insurance protection in a life insurance policy for a given period of time. In a variable universal life insurance policy, for instance, the mortality charge is deducted from the cash value each month.
This is the cost of insurance protection element of a universal life and variable universal life policy. This charge is based on the net amount at risk, the insured's current age and the insured's risk classification when the policy was purchased. ()
The cost of the insurance protection on a whole life product. On an illustration, mortality charges referred to as "current" are not guaranteed. Those stated as "maximum" are the contract guarantees. The mortality charge is similar to a one-year term rate and increases with the insured's attained age. For example, a typical $100,000 whole life policy for a 40-year-old male carries a premium of about $2,000 a year. Of that, roughly $350 is the mortality charge, and the rest of the premium goes toward the investment portion.
The charge for the element of pure insurance protection in a life insurance policy.
Cost of insurance protection element of a universal life policy. This cost is based on the net amount at risk under the policy, the insured's risk classification at the time of policy purchase, and the insured's current age.
This is the portion that you pay that will go directly to your beneficiaries. During the first years of your policy you are paying some mortality charge, but most of your money goes towards the investment portion of your policy.
A monthly deduction from a universal life insurance policy that increases as the policyholder ages.