Reply To: Free Look Cancellation
actuarymansi
What exactly is mortality charge?
Sent from my Moto G (5) Plus using Actuarial Info mobile app
These are charges life insurance company charges from it’s policyholders for providing life cover.these see deducted at the start of the month from Policyholder’s fund value. I suggest you go through unit linked plans functioning first if in case u r not aware of. You can find it in CT-5 subject which i think is CS2 now..
Sent from my ONEPLUS A6000 using Actuarial Info mobile app
Further to add for traditional policies where premium includes all loadings including that for life cover.. mortality charge is calculated basis proportion of premium that contributes for life cover and then proportionating it further for number of days cover has been provided…
Other part of premium contributes to surrender maturity reserves solvency tax and profit of company hence proportionate mortality premium cannot be applied on complete premium paid by LA
Sent from my ONEPLUS A6000 using Actuarial Info mobile app