How is the mortality charge calculated?
The mortality charge may be calculated as a one time cost that is deducted from the single premium b) It can be calculated as an annual cost that is deducted from your premium each year. It can also be deducted monthly. The annual cost may be fixed for the term of the policy, or can be computed each year based on your sum assured and your age. As the premium rate increases with age, you will have to pay a higher mortality charge as you grow older. Some people describe it as a “a time bomb” c) In some cases, the mortality charge may be waived.
