Help on Policy Expense Please.

[ranger340]

I recently reviewed a flexible premium adjustable life policy

On page 2 it stated Monthly administrative fee $7.88

and further stated

Premium expense... 12.50% of all premium received.

A relatively new agent but this policy seems very expensive.

Please comment. Thx.

 

[BNTRS]

Sounds like a Guaranteed Universal Life Insurance product. Generally high premium loads and few people care since the intention is permanent death benefit with no concern on cash accumulation and the insurer guarantees death benefit provided premiums are paid on time instead of if adequate cash value remains in the policy.

Alternatively, these are probably the maximum guaranteed charges and not the current charges. Insurers don't generally publish current charges in a policy because they aren't guaranteed and there'd be no point in putting them in there.