Policy Fee

In life insurance, particularly in Indexed Universal Life (IUL) policies, the Policy Fee is a regular charge applied by insurance companies. Its primary purposes:

• Administrative Cost Coverage: Funds expenses like underwriting, policy issuance, and ongoing administration.
• Deduction from Cash Value: Usually subtracted monthly or annually from the policy's cash value.

Variability:

• Differences Among Providers: Fees can vary based on the insurance company.
• Policy Specifics Influence: The fee may also depend on the individual characteristics of the IUL policy.

This fee is integral to the operational maintenance of life insurance policies, ensuring the provision of necessary services and management.