What is the definition of Insurance-Related Charge (of a Separate Account)?
An annual fee in a variable annuity that pays for general administrative expenses (such as financial, actuarial, accounting and legal expenses), and for the mortality and expense risk of the annuity. The mortality portion generally pays for: the guarantee to pay you a lifetime income, even if you live longer than originally estimated; and the guarantee to pay your beneficiary a death benefit, even if it is larger than your account balance. The expense portion pays for the guarantee that your contract expenses won’t increase, even if costs are greater than estimated.
