What does Cost of Insurance mean? Read on to discover the definition & meaning of the term Cost of Insurance - to help you better understand the language used in insurance policies.
Cost of Insurance
Cost of insurance is a fee associated with certain types of life insurance, such as variable and universal life insurance. Different from premiums, these charges are billed to pay for administration, mortality and other responsibilities of the insurer. The amount is determined by the risk class and age of the policyholder.
We hope the you have a better understanding of the meaning of Cost of Insurance.