Ameritas Advisors - What It Costs

What It Costs

How Much is Universal Life Insurance?
The only way to know how much a universal life insurance policy will cost is to receive a customized proposal based on your client's goals and underwriting criteria. This proposal (also called an illustration) will detail the cost of coverage.

Both the types of charges and the actual fees vary widely between policies. An understanding of the following common charges will help you evaluate policies you are considering. Generally, expenses are divided into two categories: those that are charged against the money put into the policy and those that are charged against the value of the policy. Of course, not all policies charge all of these fees. For more information about the Ameritas No-Load Universal Life fees or help evaluating a policy call the Ameritas Advisor Services salaried professionals at 1-800-555-4655.

Sales Charge	Some companies charge an up-front percentage (ranging from 0 to 10%) of the premium to cover their expenses.
Premium Taxes	Sometimes called the "percent of premium charge," this charge is used to pay state premium taxes and federal income taxes assessed against the insurance company (deferred acquisition cost).
Initial Administrative Fee	This first-year expense (ranging from $200 to $700) can be higher than ongoing administrative fees. Generally it helps cover the costs of setting up the policy, underwriting expenses, etc.
Ongoing Administrative Fee	Also called a maintenance charge, this monthly fee (ranging from $4 to $15) helps pay for continuing services such as mailing statements and prospectuses, etc.
Fees for Service�Including Loans, Withdrawals and Surrenders	Companies may limit the amount that can be borrowed or withdrawn from the policy and may charge a flat fee or percentage of the borrowed/withdrawn amount (from 0% to 4%). Many policies have surrender charges (a percentage of the account value) for several years if the policy is cancelled or values withdrawn are more than the allowable amount during that time period. Keep in mind, although these expenses are only incurred when services are requested, they are still important when considering a policy's overall cost.
Cost of Insurance & Riders	Of course, all policies charge for the actual insurance coverage. Rates vary based on the insured's age, gender, health, use of nicotine, etc. and will increase as they get older. If the policy offers additional benefits, there may be a charge for those riders selected.

Ameritas No-Load Universal Life Insurance (Form 3157) is issued by Ameritas Life Insurance Corp.