Oracle® Insurance Policy Administration 9.4.0.0 E18894_01

# COI Payment

The Cost of Insurance (COI) payment is the amount of money the insurance company charges to keep a life insurance policy in force. It is based on a client's age and health at the time he applies for coverage. Under a yearly renewable term policy, the COI is determined at the time the client applies for the policy and increases at each policy anniversary (as he gets older, it becomes more expensive to insure his life). Under a level term policy, the COI remains level during the initial guaranteed period and then increases sharply. Term insurance pays a specific lump sum to a designated beneficiary if the client dies within the period covered by the policy.

The first COI Payment activity is spawned from the Issue activity and later it is spawned from subsequent COI Payment activities.

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