Annual Administrative Fee
Updated: 09 June 2023
What Does Annual Administrative Fee Mean?
An annual administrative fee, in the context of insurance, is an annual fee that insurance companies charge to maintain group insurance plans, generally employee group insurance plans. These fees make sure that the insurance plan is able to cover mortality and expenditures. Those in the group insurance plan will be promised payouts for death benefits and weekly payouts if a situation arises where it is needed.
Insuranceopedia Explains Annual Administrative Fee
To further explain annual administrative fees, one must understand what fees are necessary to maintain these plans. There are fees the company pays from printing out materials to shipping them to much more. Administration fees are designed to cover the significant costs of administering a group plan.
Related Definitions
Related Terms
Related Articles
Life Insurance Companies: 67 of the Biggest Carriers in the U.S.
Farm Insurance: 9 Essential Policies to Know
Commercial Insurance Premiums: How Are They Calculated?
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Related Reading
What Is Temporary Life Insurance?
Revealing the Most And Least Popular U.S. Insurance Companies
Texas is the state with most people killed by animals in the US
Life Insurance Statistics
How Long Do You Have To Have Life Insurance Before You Die?
Life Insurance Statistics