Consider your goals, time horizon, risk tolerance and other factors when
selecting subaccounts.
In this case,
you select the subaccounts — essentially mutual funds — that you want attached to your policy, and your account's annual return is pegged to the performance of these underlying investments.
Not exact matches
Earnings based on the performance of the investment options (or «
subaccounts») you
select from among those offered under the annuity.
For example, a deferred variable annuity may guarantee that your beneficiary will receive at least the amount of your original principal if you die, even if the value of the annuity has declined due to poor performance of the
subaccounts you
selected.
With most policies you can
select from several different investment
subaccounts (or investment options).
You specify how much of your annuity will be invested in the various
subaccounts and your return will be based on the performance of the investments you
select.
The
subaccount is diversified across a range of industries and the management team conducts intensive research to
select companies that appear capable of servicing their outstanding debt obligations.
• Losing money and / or not making money in up markets, due to poor performance of the poorly -
selected investment choices (called their «line - up» of variable
subaccounts, which are just the choices of regular mutual funds wrapped up in a tax wrapper
selected as the most profitable to sell by the good «ol boys at the life insurance company).
Earnings based on the performance of the investment options (or «
subaccounts») you
select from among those offered under the annuity.