How is the monthly increase in my cash value computed?
Three factors affect cash value increases: • Premiums: All premium payments are added to the previous month’s cash value. • Expenses: Deductions for administrative costs, acquisitions costs, service costs and mortality costs are made. • Cash Value: After premium, if any, is added and expenses are deducted, the balance of the cash value is credited with the monthly equivalent of the current annual crediting rate to create a new cash value amount.
