An expense charge is a cost deducted by an insurer to cover policy administration, distribution, and overhead. In permanent life insurance it may appear as a percent-of-premium load, a per-thousand charge, or a monthly policy fee. Expense charges reduce cash value accumulation and should be considered alongside cost of insurance and credited interest. Transparent illustrations disclose current and guaranteed maximum charges. Understanding expense charges helps advisors compare products fairly and manage funding strategies to keep policies on track.

During policy reviews, advisors isolate expense charges to explain why cash value growth may lag illustrations. They compare current charges to guaranteed maximums and discuss options: increase funding, reduce death benefit, or consider a replacement when appropriate. Understanding charges helps clients make informed, sustainable premium decisions.