What is a Mortality Charge?

Posted: 10/22/2009

Under an interest-sensitive universal or whole life insurance policy, a mortality charge is the cost that is charged by the insurance company for particular expenses and the insurance protection. Each month or bi-monthly the mortality charge will be deducted from the account value of the policy. This is based on three main factors such as the risk classification when the policy was first purchased, the attained age of the insured, and finally the net amount of risk under your policy. The insurance company does reserve the right to change their cost of insurance charges from time to time, but they are not permitted to exceed the maximum pre-specified in the original policy.

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