The administrative and mortality charge on the single premium is listed as what percentage?

The administrative and mortality charge on a single premium for variable life insurance is often set at 3%. This percentage is significant because it reflects the costs associated with maintaining the policy, including the administrative expenses incurred by the insurance company and the mortality risk associated with providing life coverage.

Understanding this charge is crucial for policyholders because it impacts the overall performance of the policy and the amount of cash value that accumulates over time. When the policy stipulates a 3% charge, it essentially means that for every dollar contributed in premiums, 3 cents are allocated towards these costs, which can ultimately affect the investment component of the variable life policy.

This understanding enables potential buyers to make informed decisions regarding their insurance needs and the implications of various charge percentages. Knowing the correct percentage helps in accurately assessing the policy's value and returns.