Premium Charge

In Indexed Universal Life (IUL) insurance, the Premium Charge is a portion of the premium payment retained by the insurer to cover various policy-related expenses. Key points:

• Coverage of Costs: Includes underwriting, administrative fees, and agent commissions.
• Allocation After Deduction: The amount remaining post-charge contributes to the policy's cash value account.
• Potential for Growth: This cash value can grow based on a selected market index, like the S&P 500.

Policy Specifics:

• Variability: Charges can differ across various IUL policies.
• Policy Contract Details: These charges are typically detailed in the policy documentation.

Understanding Premium Charges is crucial for policyholders to comprehend their premiums' allocation and potential growth in IUL policies.