Annuity glossary
Mortality and Expense (M&E) Charge
An annual fee deducted from variable annuity assets that pays for the contract's insurance guarantees, including the death benefit, the promise that contract charges will not rise, and the insurer's overhead. It is one of the main reasons variable annuities cost more than most other annuity types, and it compounds against returns yearly. The contract explains the calculation, timing, exceptions, and owner choices that apply. Any guarantee is backed by the claims-paying ability of the issuing insurer.
Any guarantee is backed by the claims-paying ability of the issuing insurer.
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