Expressed in dollars, this is the yearly fee charged to compensate the insurance company for the cost of maintaining and administering the variable account.
Benefits
Investors should note that because this charge is deducted by cashing annuity units, it is not reflected in the AUV or in the total return of the subaccount. The charge normally applies only during the contract's accumulation, not during its annuity phase. Unlike VA contract charges, VL contract charges are deducted from monthly premium payments prior to investment.
Origin
This information is taken from the insurance contract's prospectus.