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what are the hidden costs in a policy there are four types of costs in every life insurance policy whether disclosed or not disclosed there are cost of insurance charges uh that is the 800 pound gorilla uh you know if youre gonna if you were in charge of running a business and you were spending 85 of your expenses on one thing you would focus at least 85 percent of your attention on that one thing to make sure that you are as efficient as possible in that area so cost of insurance charges are 85 percent of the total cost equation uh premium loads which the insurance company collects to pay commissions uh uh fixed Administration expenses uh premium loads are a percentage of the premium paid fixed administrations or Administration expenses are fixed um at the time of policy issuance based on the face amount of the policy those expenses are also oftentimes used to pay a commission or a an override for service kind of thing uh and then um uh cash value based fees uh are are collected most
