Mortality and Expense Risk Charges

Mortality and Expense Risk Charges are fees associated with certain investment products, like variable life insurance or annuities. They compensate insurance companies for the risks they take, such as paying out benefits when policyholders die (mortality risk) and covering operational costs (expense risk). These charges are typically deducted from your investment returns. While they help ensure the insurance company can meet its obligations, they can reduce the overall growth of your investment. Understanding these charges is important for evaluating the value and performance of your investment product.