Common use of Sub-Account Expenses Clause in Contracts

Sub-Account Expenses. Fees and expenses are also charged on the underlying investment options, called sub-accounts, either a variable annuity or buffered annu- ity. The fees and expenses of the sub-accounts include annual operating expenses, such as management fees, 12b-1 (distribution) fees, cost of shareholder mailings, and other expenses. Sub-account expenses are charged as a percentage of the account value annually and can range from no charge (typically for money market sub-accounts) to as much as 2% per sub-account selected.

Sub-Account Expenses. Fees and expenses are also charged on the underlying investment options, called sub-accounts, either in a variable annuity or buffered annu- ityannuity. The fees and expenses of the sub-accounts include annual operating expenses, such as management fees, 12b-1 (distribution) fees, cost of shareholder mailings, and other expenses. Sub-account expenses are charged as a percentage of the account value annually and can range from no charge (typically for money market sub-accounts) to as much as 2% per sub-account selected.