The Monthly Expense Charge (PER 1,000) is a fee that insurance companies deduct from your life insurance policy to cover administrative costs. This charge is typically calculated based on the amount of coverage you have and is expressed as a cost for every $1,000 of coverage. Understanding this charge is important because it can reduce the cash value that accumulates in your policy over time.
For example, if your policy has a higher coverage amount, the monthly expense charge will also be higher, impacting how much you see grow in your policy’s cash value. Keeping an eye on these charges can help you manage your policy more effectively and ensure you’re getting the most out of your insurance investment.