Administrative Expenses

Administrative Expenses in an IUL policy refer to the costs incurred by the insurance company in the management and maintenance of the policy. These expenses encompass a range of activities, including policy issuance, record-keeping, customer service, premium processing, and other related operational tasks. In many IUL policies, these expenses are recovered by the insurance company through various charges, including an administrative charge. The specifics regarding how and when these expenses are deducted and their amounts are detailed in the policy contract.

Note: While these expenses are necessary for effective policy management, policyholders should be familiar with the extent and breakdown of these costs, as they can influence the growth of the policy's cash value and the overall policy performance.