Sentences with phrase «investment subaccounts»
"Investment subaccounts" are like individual compartments within an investment account. They allow you to divide your money and invest it in different ways based on your goals or preferences. Full definition
If you own a variable life policy, you may allocate your account value among a variety of investment subaccounts.
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But instead of investing your money in the insurance company's general account, as with a fixed annuity, your money is invested in a separate account made up of a number of different investment subaccounts.
Variable universal life insurance is a sort of mix between variable and universal life, meaning consumers can vary premium payments and can also allocate them among investment subaccounts.
Variable universal life insurance offers several investment subaccounts that invest in a portfolio of securities whose principal and rates of return fluctuate.
It's important to be able to make a significant investment over the first several years as this initial investment of premium «primes the pump,» meaning that, assuming the underlying investment subaccounts perform adequately, the insured's policy can become self - funding.
Under a variable universal life contract, policyholders have numerous investment subaccounts available to them like they do with variable life policies but also have the flexibility in premium payments and frequency offered by universal life policies.
Earnings in a variable annuity are based on performance of investment subaccounts that range from stocks and bonds to equity and money market funds.
With most policies you can select from several different investment subaccounts (or investment options).
But here is the unique difference: you decide how the premium is divided among the investment subaccounts.
For example, variable annuities and variable universal life insurance allow investors to allocate premiums among a variety of investment subaccounts, which can range from conservative choices, such as fixed - interest and money market portfolios, to more aggressive, growth - oriented portfolios.
Unlike a fixed annuity, which pays a fixed rate of return, the value of a variable annuity contract is based on the performance of the investment subaccounts that you select.
The owner of a variable annuity allocates premiums among his or her choice of investment subaccounts, which can range from low risk to very high risk.
But when you buy a PPLI, you can customize your investment subaccounts.
If you own a variable life policy, you may allocate your account value among a variety of investment subaccounts.