Ameritas Advisors - What It Costs

What It Costs

How Much is Variable Life Insurance?
The only way to know how much a variable universal life insurance policy will cost is to receive a customized proposal based on the goals, objectives, investment choices, and underwriting criteria of your client. This proposal or illustration will detail the cost of the coverage and potential performance.

Both the types of charges and actual fees can vary widely between policies and companies. An understanding of the following common charges will help you evaluate policies you are considering recommending to your client. Generally, expenses are divided into two categories: those that are charged against the money you put into the policy and those that are charged against the cash value of the policy (after the money has been invested in the chosen subaccounts). Of course, not all policies charge all of these fees. For more information about the Ameritas Low-Load Variable Universal Life fees or help evaluating a policy call the Ameritas Advisor Services salaried professionals.

Because there is an investment component to variable universal life insurance, you should read a prospectus before investing or sending any money. The prospectus provides detailed information about the product's exclusions, limitations, risks, and charges.

Sales Charge	Some companies charge an up-front percentage (ranging from 0 to 10%) of your 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 Transfers, Loans, Withdrawals and Surrenders	Companies generally limit the number of transfers among investment options and/or charge a fee for those transfers (from $0 to $25). Companies may limit the amount you can borrow or withdraw from your policy and may charge a flat fee or percentage of the borrowed/withdrawn amount (from 0% to 4%).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 you cancel the policy or withdraw more than the allowable amount during that time period. Keep in mind, although these expenses are only incurred when you request a service, 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 age, gender, health, use of nicotine, etc. and will increase as the insured gets older. If the policy offers additional benefits, there may be a charge for those riders selected.
Mortality and Expense Charge (M&E)	This charge is assessed against the value in the subaccounts to pay for mortality costs and other expenses. Any excess is the insurance company's profit.
Fund Expense or Investment Management Fees	These fees pay the investment option advisor or subadvisor for management advice as well as for actual trading expenses and other administration costs of the investment option. It varies depending on which investment options you choose within your policy.

The Ameritas Low-Load Variable Universal Life insurance policy (Form 4055) is issued by Ameritas Life Insurance Corp. and underwritten by affiliate Ameritas Investment Corp. Variable products have investment risk, including the possible loss of principal. Before investing, carefully consider the investment objectives, risks, charges, expenses and other important information about the policy issuer and underlying investment options. This information can be found in the policy and investment option prospectuses, which are available on this web site. Please read the prospectus carefully before investing or sending any money. It is possible that coverage may not continue to maturity date if policy costs reach maximum guaranteed levels, and premiums continue to be paid at the initial planned premium level.