The premiums you pay are fixed throughout the life of the contract, while the performance of your chosen
subaccounts determines the growth of your account value, and can also determine the value of your death benefit.
The premiums you pay are fixed throughout the life of the contract, while the performance of your chosen
subaccounts determines the growth of your account value, and can also determine the value of your death benefit.
Not exact matches
You (the annuity owner) make a lump - sum payment or a series of premium payments to an annuity issuer (the insurance company), which will accumulate earnings at a fixed interest rate (a fixed annuity) or a variable rate
determined by the growth (or losses) in investment options known as
subaccounts (a variable annuity).
However, in addition to these features, MAM accounts provide increased flexibility to allocate higher leverage to
determined subaccounts.
Your cash value, and perhaps the death benefit, will be
determined by the performance of the chosen
subaccounts.
The participation rate
determines what percentage of the growth realized by the index the
subaccount tracks will be credited to your account, subject to the cap rate.
Allocation to these
subaccounts are generally credited with an amount of interest based on the growth of the relevant index over a certain period of time, often called the index period, using two methods used to
determine the crediting rate:
How do we
determine whether money is coming from this separate
subaccount?