Before buying a life insurance policy, be sure you understand the policy charges and fees. Insurance companies deduct some industry standard fees from your premium and cash value. Keep in mind that these charges vary by product.

Common life insurance fees

Cost of insurance

This is the actual cost of having insurance protection. It's based on your age, ender, health and death benefit amount. This fee is usually charged once a month.

Premium loads/sales charges

These charges compensate us for sales expenses and state and local taxes. Charges are deducted from your premium payment before it is applied to the policy.

Administration fees

These fees are used to pay the costs of maintaining the policy, including accounting and recordkeeping. Administration fees usually are deducted from your policy value once a month.

Monthly per thousand charge

This charge is based on your age, gender and underwriting classification. This charge is assessed monthly.

Surrender charge

This charge is deducted from your cash value if you surrender (terminate) your policy during your surrender charge period. Be sure to check the length of your surrender charge period when evaluating a policy to buy.

Mortality and expense risk charge

When we issue a policy, we estimate you'll live to a certain age based on your current age, gender and health. A mortality & expense charge compensates us if you don't live to the estimated age. This charge is generally charged once a month.

Fund management fees

These fees compensate the fund managers for their work. Fund management fees are usually deducted from the price paid for the shares of underlying fund options, and not directly from your cash value.