5 Points about Mortality Charges

1.  Morality charge is the actual cost of insurance in an insurance policy. It is appointed from the premium paid on the insurance policy.

2.  The morality charge in insurance policies is aimed at protecting the insurer against the risk of the insured’s death.

3.  Mortality charges in insurance policies are dependent on life expectancy ratios. If the life expectancy ratios increase, mortality charges tend to decrease.

4.Mortality charges differ depending  on the risk classification- age of the individual and sum assured. They are higher for a higher risk, age and sum assured.

5.These charges are deducted on a monthly basis from the premium paid on a life insurance policy. In case of a ULIP, an equivalent number of units are cancelled from the savings fund towards mortality charges.