Endowment: The point at which a policy’s cash value equals its face amount. For policies satisfying the definition of life insurance under IRC §7702, endowment/maturity can occur no sooner than age 95. (Also see Maturity.)
Expense Charges: Charges made on accumulation-type policies to reimburse the insurer for a portion of its costs of issuing and maintaining the policy. Some expense charges are deducted from the gross premiums paid. Others are monthly charges deducted from the accumulation value.
Experience-Rated Pricing: Policies identified as experience-rated are designed to more closely reflect the actual claims experience and operating expenses for a particular market segment, distribution channel, or segregated pool of insureds, and are therefore typically only available to policy holders meeting certain minimum financial requirements, insureds of certain insurers, and/or clients of certain distribution systems. Experience-rated policies often involve high minimum policy face amounts and/or high minimum premium requirements, are commonly referred to as “Proprietary", "Private Placement", or "Accredited Investor" products, and may or may not be registered with the State Department of Insurance for protection/insulation against adverse pricing changes. In addition, depending upon the actual claims experience and operating expenses for the risk pool underlying each given product, experience-rated policies can include low or high cost of insurance (COI) charges, and/or low or high fixed administration expenses, and/or low or high premium loads, and/or low or high cash-value-based "wrap fees", and usually low or no termination fees (i.e., surrender charges).