Mortality charge



When you buy your life insurance policy, the insurance company will levy a charge for providing cover, known as the mortality charge.

This charge varies with each policyholder.

The mortality rate is linked to the life expectancy ratio of an average Indian; higher the age, higher the charge, as the sum at risk also increases.

Insurance companies also consider other factors such as health, gender, geography and occupation of the customer for deciding on the mortality rate.

They use the mortality table prescribed by IRDAI for computing the mortality charge.

While in life insurance policies, mortality charge is the only cost charged to the policyholder, in endowment policies and ULIPs, this become one of the other charges that gets deducted from the premium before the money is invested.

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