Per 1,000 Charges

In Indexed Universal Life (IUL) policies, "Per 1,000 Charges" represent a specific method of calculating the Cost of Insurance (COI). This involves:

• Calculation Basis: Charges are determined per $1,000 of the death benefit.
• COI Determination: Used by insurance companies to calculate the policy's insurance cost.

Example and Application:

• Illustration: With charges of $0.50 per $1,000, a policyholder pays $0.50 for every $1,000 in death benefit coverage.
• Deduction From Cash Value: These charges are typically subtracted from the policy's cash value, either monthly or annually, to fund the life insurance coverage.

Understanding "Per 1,000 Charges" is crucial for policyholders to comprehend the cost structure of their IUL policy and its impact on the cash value.