4) Mortality charges
This is charged towards providing you the insurance cover. When a policy is issued, the insurance company assumes the insured person will live to a certain age based on their current age, gender and health conditions. This charge compensates the insurance company in case the insured person doesn't live to the assumed age. It is generally charged once a month.
The actual amount paid under this head depends on the amount of life cover sought, the age of the policy holder and other such details. The methodology of computing the mortality charges along with the mortality charge table is generally a part of the policy document.
When insurance buyers purchase an insurance-cum-investment product, such as a ULIP, their primary objective is investment. In fact, they may be sufficiently well covered with an additional term policy. However, they still have to pay the mortality charge that comes with the plan.