The Mortality and Expense (M&E) Risks Charge is a fee that insurance companies apply to variable universal life insurance policies to cover the risks they take on. This charge is meant to account for the cost of paying out death benefits and other administrative expenses related to managing the policy. Knowing this charge is essential because it impacts the overall cash value and growth potential of your policy.
This charge is typically taken out of your premiums or the cash value of your policy, which can reduce how much money accumulates over time. Understanding the M&E charge can help you make informed decisions about your policy and how it fits into your overall financial plan. It’s a crucial factor in evaluating the long-term benefits of your insurance investment.