Skip navigation
What’s Behind the Increase in Cost of Insurance Charges?

What’s Behind the Increase in Cost of Insurance Charges?

How to proactively represent an ILIT trustee

Some life insurance carriers have begun to announce increases in the cost of insurance (COI) on certain closed blocks of outstanding universal life (UL) products. “COI” refers to payments of claims and is the largest single cost incurred by life carriers. COI charges can account for 75 percent to 85 percent of the total premium. An increase in COI charges will have an immediate economic impact on non-guaranteed policies, forcing policyholders to make some hard economic decisions.

All access premium subscription

Please Log in if you are currently a Trusts & Estates subscriber.

If you are interested in becoming a subscriber with unlimited article access, please select Subscription Options below.

Questions about your account or how to access content?

Contact: [email protected]

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.