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Cost of Insurance
for Universal Life Insurance
Future cost of insurance charges for Universal Life Insurance Policies are typically not easy to obtain from your life insurance company. We may be able to help, contact us at 1-877-227-4484 for assistance.

DEFINITION OF COST OF INSURANCE (COI)


Generally applicable to life insurance policies such as variable and universal life, cost of insurance charges are monthly charges for mortality, administration, and other aspects of expenses on the part of the life insurance company. They are assessed against the policy based on the insured's attained age, the original rating class, and the current net amount at risk. In most cases, the cost of insurance is deducted from any premium payments made before crediting the account's accumulation value. Additionally, historical cost of insurance charges are used when determining Cost Basis, which is important for tax considerations of surrendering a life insurance policy or selling a policy.

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