Mortality Charges are fees that life insurance companies deduct from your policy to cover the risk of paying out death benefits. These charges are based on factors like your age, health, and the amount of coverage you have. It’s important to understand mortality charges because they directly impact the cost of your premiums and the overall value of your policy.
As you get older, mortality charges may increase, which can affect how much cash value accumulates in your permanent life insurance policy. Knowing how these charges work can help you plan for your financial future and ensure that your insurance policy continues to meet your needs. Being aware of these costs is essential for effective policy management.