Quite often you hear your insurance advisor talking about mortality charges in your life insurance. But what is the meaning of mortality charges? How are they computed and as a policy holder does it give any benefit to you? What should you know to save on mortality charges?
What are mortality charges?
Whenever you buy a life insurance policy, the company offering it will levy a charge for the insurance protection upon death and to cover certain other expenses. In a nutshell this is the actual cost of insurance. Technically called mortality charge, this is deducted usually every month from your policy's account value. While the insurance company can tweak these charges from time to time it cannot exceed the maximum limit as specified in the policy.
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