Expense Charges within Current Assumption Whole Life (CAWL) Insurance

Principally two elements comprise the expense charge: (1) a fixed annual fee, plus (2) a percentage of premiums paid. The company may or may not reveal these fees in its original policy illustration. However, even if it does, the company usually does not guarantee that the expense charges will not change. Actual expense charges may increase or decrease in future years.

Reproduced with permission.  Copyright The National Underwriter Co. Division of ALM

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