Insurance Expense

The percentage of subaccount assets deducted each year to cover M & E risk charges and other miscellaneous administration fees. If the subaccounts in the contract have different expense levels, then the insurance expense for the contract will appear as Multiple.

Benefits

Investors should note both the raw expense figures, as well as expense trends that might indicate if a subaccount is becoming more or less expensive to hold.

For the Pros

The administration charges, distribution charges, and M&E risk charges listed in the Contract View of Workstation together make up the total insurance expense for a contract.