Policy Charges & Expenses Page Often Not Disclosed

Why Consumers and Professionals Should Partner with LifeInsuranceReview.com (LIR) for an Independent Second Opinion

When buying a life insurance policy, most people focus on the benefits and features highlighted by sales professionals — agents, brokers, and financial advisors. These professionals often emphasize attractive features such as tax-free growth, cash value accumulation, and policy flexibility.

However, what’s usually not disclosed — and can make or break the long-term success of your policy — is the Policy Charges & Expenses page.

Why the Policy Charges & Expenses Page Matters

When you buy an Indexed Universal Life (IUL) policy, you’re told it’s flexible — you can adjust premiums, change death benefits, and access cash value. While flexibility sounds great, it cuts both ways.

That same flexibility allows the insurance company to change the cost of insurance (COI), administrative loads, cap rates, and participation rates — all of which can quietly shift value away from you and toward the company over time.

Even with the implementation of Actuarial Guideline 49-A, 49-B, and soon 49-C, created by the National Association of Insurance Commissioners (NAIC) to standardize IUL policy illustrations, insurance companies are still not required to include or show the Policy Charges & Expenses page as part of the sales illustration.

It’s Not Buried — It’s Just Not Required to Be Shown

Here’s what most consumers — and even many professionals — don’t realize:

• The Policy Charges & Expenses page is not hidden somewhere in the illustration.

• It’s simply not required by regulation to be included or shown to the client unless the client specifically asks for it.

• It’s also highly technical and difficult for many agents, brokers, or financial advisors to explain clearly.

• And most importantly, it’s not the exciting part of a sales presentation.

In short, it’s the page that shows what the insurance company gets paid, not what the client is promised. So, many sales professionals either don’t include it or don’t highlight it because it’s not required — and it doesn’t help close the sale.

Always Ask for the Policy Charges & Expenses Pages

When reviewing a life insurance illustration, insist on seeing the Policy Charges & Expenses pages. They may appear under alternative names such as:

• “Annualized Expense Charges & Deductions”

• “Policy Administrative Charges”

• “Cost of Insurance Summary”

These pages reveal exactly how much of your premium goes toward insurance costs, internal expenses, and fees, and how much actually builds your cash value.

By comparing the expense pages to the assumed interest rate ledger, you’ll see the real performance impact that policy costs have over time.

Why Work With a Licensed Life Insurance Analyst

Unlike agents, brokers or financial advisor selling life insurance, a Licensed Life Insurance Analyst — like those at LifeInsuranceReview.com (LIR) — operates under a fiduciary duty to act in the client’s best interest.

We are legally authorized by the State of California to review, analyze, and advise on life insurance policies for a fee — meaning we do not rely on commissions.

Most sales professionals are not fiduciaries. Their incentive is to sell a product, not to ensure that product is the most efficient or appropriate for your financial goals.

At LIR, we provide independent, unbiased reviews that expose hidden costs, unrealistic projections, and overlooked risks — before it’s too late.

Why Professionals Refer Their Clients to LIR

Our success has been built through partnerships with other professionals — CPAs, financial planners, estate attorneys, and even other insurance agents — who refer their clients for a second independent opinion.

When you refer your client to LifeInsuranceReview.com, you’re protecting their financial future, your professional reputation, and ensuring they make decisions based on complete and transparent information, not just a sales illustration. The issues of ILU illustrations often not bring up or to disclose the Policy Charges & Expenses pages are real.

Consumers: Use Your Free-Look Period Wisely

Even after you’ve purchased a policy, you have a free-look period (typically 10–30 days). During this time, you can cancel or make changes without penalty.

Use this window to have your policy independently reviewed by LIR. We’ll translate the technical jargon into plain English — helping you understand the real numbers, real costs, and real implications behind your policy.

Key Takeaways

• The Policy Charges & Expenses page is not buried — it’s not required to be included or shown unless you ask for it.

• It’s technical, complex, and not sales-friendly, so most agents skip it.

• These costs directly impact your cash value growth and policy longevity.

• Licensed Life Insurance Analysts like those at LIR act as fiduciaries, not salespeople.

• Get an independent second opinion from LifeInsuranceReview.com before or after purchasing a policy.

Frequently Asked Questions (FAQs)

1. What is a Policy Charges & Expenses page?

It’s a detailed breakdown showing how much of your premium goes toward insurance costs, administrative expenses, and policy fees. It reveals what the insurer keeps and what actually contributes to your cash value.

2. Why isn’t this page shown during most policy sales?

Because it’s not required by regulation to be included in the illustration unless you specifically ask. It’s also technical and doesn’t help sell the policy, so most agents omit it entirely.

3. Can the insurance company change these charges later?

Yes. Over time, insurers can raise policy charges, reduce cap rates, or change participation rates — all of which can lower your policy’s performance.

4. How can a Licensed Life Insurance Analyst help me?

A Life Insurance Analyst works for you, not the insurance company. We review the full policy and provide a neutral, transparent analysis of all assumptions, costs, and performance projections.

5. What’s the difference between LIR and an insurance agent?

LifeInsuranceReview.com (LIR) is licensed as a Life Insurance Analyst in California — legally authorized to review and analyze policies for a fee. We can also act as a broker under a separate engagement if requested, but our fiduciary duty always remains to the client.

6. How can professionals partner with LIR?

CPAs, financial planners, and estate attorneys can refer clients to LIR for a second opinion. This ensures clients receive full transparency and protects the referring professional’s reputation by promoting informed, compliant decisions.

Policy Charges & Expenses Page Often Not Disclosed For Many Reasons...

Don’t buy a policy you don’t fully understand.The Policy Charges & Expenses page may not be buried, but it’s not automatically shown — and that’s exactly why it’s so important to ask for it and have it reviewed independently.

Whether you’re a consumer or a professional, partner with LifeInsuranceReview.com for a second, independent opinion before making any commitment.

Because in life insurance, what you don’t see could cost you more than you think.