Cost of Insurance Charge

a fee that an insurer will deduct (usually monthly) from the Cash Value of a life insurance policy that reflects in some way the risk that the insured person will die during that month and what the insurance company would have to pay if that happened. The Cost of Insurance Charge is usually calculated by multiplying the Cost of Insurance Rate (an amount reflecting the risk that the insured person will die) times the Net Amount at Risk, which is essentially the amount of money the insurance company would have to pay if the insured died.