Common use of Charges and Deductions Clause in Contracts

Charges and Deductions. The mortality and expense risk fee and the administrative charge are each deducted both before and after the annuity commencement date to compensate for changes in mortality and expenses not anticipated by the mortality and administration charges guaranteed in the policy. The service charge is deducted prior to the annuity commencement date only. If the mortality and expense risk fee is more than sufficient, the Company will retain the balance as profit or may reduce this fee in the future.

Charges and Deductions. The mortality Mortality and expense risk fee Expense Risk Fee and the administrative charge Administrative Charge are each deducted both before and after the annuity commencement date to compensate for changes in mortality and expenses not anticipated by the mortality and administration charges guaranteed in the policy. The service charge is deducted prior to the annuity commencement date only. If the mortality Mortality and expense risk fee Expense Risk Fee is more than sufficient, the Company will retain the balance as profit or may reduce this fee in the future.