A mortality and expense risk charge is a fee imposed on investors in annuities and other products offered by insurance companies. It compensates the insurer for any losses that it might suffer as a result of unexpected events, including the death of the annuity holder.
The amount of the fee varies according to a number of factors including the age of the investor. The average fee is about 1.25% per year. The mortality risk is the chance that the company will have to pay out a death benefit sooner than expected—Read more at Investopedia. Kagan, Julia. “Mortality and Expense Risk Charge.” 12 November 2019