A Premium Charge, often referred to as a Premium Load, is an additional fee that insurance companies apply to the premiums you pay for your policy. This charge helps cover the costs of underwriting, administration, and sales commissions associated with the policy. Understanding premium charges is important because they can reduce the amount of your premium that goes toward building cash value.
When evaluating life insurance options, it’s essential to factor in premium charges to get a complete picture of your costs. A higher premium load may mean less money accumulates in your cash value.