Annuity glossary

Cost of Insurance (COI)

The monthly charge inside a universal life or IUL policy that pays for the actual life insurance protection. It is based on your age, underwriting class, and the amount the insurer has at risk, and it rises as you get older, which is a key reason underfunded policies can collapse in later years. Policy documents explain the timing, charges, limits, and conditions that apply to the owner.

Any guarantee is backed by the claims-paying ability of the issuing insurer.