A fee paid by a variable annuity contract owner for withdrawal of an amount that exceeds a specific percentage or for cancellation of the contract within a specified amount of time after purchase. (transamerica.com)
The amount of the payments depends on the original contract owner's age as payments will be calculated based on the owner's life expectancy. (pocketsense.com)
This allows older contract owners to pay the same premium in later years when mortality expenses rise. (einsurance.com)