Mortality and Expense Risk Charge

Mortality and Expense Risk Charge

An annual fee that some annuities and insurance policies assess on holders to compensate the provider for additional risk of death or the occurrence of some other insured event. For example, an insurance company will likely add a mortality and expense risk charge for a life insurance policy if someone purchases the policy at the age of 88 (indeed, some insurance companies do not provide policies for someone of this age). However, the company will be unlikely to add the charge if a person in good health purchases a policy at the age of 25.
References in periodicals archive ?
In contrast, the median Mortality and Expense risk charge for return-of-premium variable annuities is 115 basis points.
In contrast to this number, the insurance industry is charging a median Mortality and Expense risk charge of 115 basis points, although the numbers do vary widely for different companies and policies.
The Vanguard Variable Annuity Plan has reduced its mortality and expense risk charge -- for the third time in three years -- from 0.
In December 1997, the Vanguard Variable Annuity Plan reduced its mortality and expense risk charge from an effective rate of 0.
Often, these charges will include a sales charge, mortality and expense risk charge, administrative fees and underlying fund expenses, as well as additional charges for any optional riders you might elect.
The associated mortality and expense risk charge is 0.
With the unbundled death benefit options, mortality and expense risk charges will range from 0.
Election of the EEDB will increase the annuity's mortality and expense risk charge by 0.
The insurance company subtracts these fund expenses, combined with mortality and expense risk charges, before it credits investment earnings to your portfolio.
You should be looking at returns that have been reported net of fund expenses and mortality and expense risk charges.
These are mortality and expense risk charges and administrative charges.
Mortality and expense risk charges are currently only 70%, significantly below the industry average of 1.