What does Annual Administrative Fee mean? Read on to discover the definition & meaning of the term Annual Administrative Fee - to help you better understand the language used in insurance policies.
Annual Administrative Fee
An annual administrative fee, in the context of insurance, is an annual fee that insurance companies charge to maintain group insurance plans, generally employee group insurance plans. These fees make sure that the insurance plan is able to cover mortality and expenditures. Those in the group insurance plan will be promised payouts for death benefits and weekly payouts if a situation arises where it is needed.
We hope the you have a better understanding of the meaning of Annual Administrative Fee.