mortality and expense risk charge

The company charges a fee as compensation for bearing mortality and expense risks under the contract. An annual charge of 0.20%, 0.25%, or 0.32% (depending on the death benefit you select) is assessed. The mortality and expense risk charge described above cannot be increased. If the charge is more than sufficient to cover actual costs or assumed risk, any excess will be added to the company's surplus. If the charges collected under the contract are not enough to cover actual costs or assumed risks, then the company will bear the loss.