Mortality and Expense (M&E) Charges are fees within certain life insurance policies, particularly variable life policies, that cover the cost of insurance and various administrative expenses. These charges are deducted from your policy’s cash value to compensate the insurer for risk and policy management.
The M&E charge varies based on the policyholder’s age and health, as well as the specific policy terms. While they’re necessary to maintain coverage, these charges reduce cash value growth and can affect long-term policy performance.