Unit - A measure of your ownership interest in a subaccount the
prior to the Annuity Date or surrender of the Contract. The value
of the unit reflects the investment experience similar to that of a share
owned in a mutual fund.
Accumulation Period - The interval of time
usually from the Contracts Date of Issue to the Annuity Date or Surrender
of the Contract.
Accumulated Value - The accumulated value
of all the subaccounts and the Guaranteed or Fixed Account prior to the
Annuity Date of the Contract. It also refers to the market value of the
subaccounts and Fixed or Guaranteed account when calculating the loan or
surrender value of the contract.
Annuitant - The person on whose life is used
to determine the length of the annuity payments and upon who death the
benefits are calculated.
Annuity Date - The date elected by the
owner as when annuity payments will begin.
Annuity Payment - One of a series of
payments made under the annuity payout option.
Annuity Payment Option - One of a number of
choices one may make to receive annuity payments. Payments generated from
the fixed annuity option remain constant and do not change over
time. Payments from the variable annuity option which are based on
the performance of the underlying subaccounts do change over time.
Annuity Unit - The measurement used in
determining the amount of any variable annuity payment. The value of an
annuity unit for each subaccount will depend upon the assumed investment
rate and the investment experience of that subaccount, and will vary in
Beneficiary - The person designated as the
recipient of the death benefit.
Contingent Annuitant - The person named to
become the annuitant on the annuitant's death prior to the annuity date.
Contract Date - The date on which the
contract was issued.
Contract Year - The 12 month period
following the date of issue of the contract and each 12 month period
thereafter. In certificates issued under group contracts, these period are
known as "Certificate Years".
Current Rate - The interest rate which is
credited to the fixed or guaranteed account. The current rate is
established by the issuing company and may changes with interest rates in
Death Benefit - The benefit paid to the
beneficiary in accordance with the provisions in the contract.
Free Look Period - The period under which
the contract can be cancelled and treated as void from the contract date.
Fixed Annuity Option - The annuity option
under which the company promises to pay the annuitant, or any other payee
designated by the owner, fixed payments.
Guaranteed Account or Fixed Account - That
subaccount which is not part of the separate account and is part of the
general account of the issuing company. This account is segregated from
other assets of the company and earns a guaranteed interest rate payable
by the company.
Guaranteed Interest Rate - That interest
rate which is stated by the company to be paid on funds in the guaranteed
Guarantee Period - A period of time during
which the company will credit a stated rate of interest. The guarantee
period is usually one year.
Maturity Date - The date on which annuity
Owner - The person or entity to whom the
contract is issued, who is entitled to exercise all rights and privileges
under the contract.
Payee - The owner, annuitant, beneficiary
or any other person or legal entity to which benefits are paid.
Premium Tax - A taxed charged by the state
or any other governmental authority on either the premium payment or value
of the separate account. (see State Premium Taxes)
Premium Payment or Purchase Payment - The
amount of money that is invested in the contract either directly or by an
automatic investment plan or payroll deductions.
Qualified Contract - A contract issued
under a Individual Retirement Arrangement under section 408(b), a Tax
Sheltered Annuity under section 403(c), 401(k) profit sharing plans and
deferred compensation plans under section 457 of the IRS code.
Separate Account - Those assets which are
segregated by the issuing insurance company from all other assets of the
company. These assets are invested and managed by professional
portfolio managers similar to that of a mutual fund.
Subaccount - That portion of the separate
account that invests in shares of stock comprising it's own portfolio
with specific investment objectives.
Variable Annuity Option - An annuity option
under which the company will make to the annuitant or any other payee
designated by the owner of the contract, payments which vary in amount in
accordance with the net investment experience of the subaccounts selected
by the owner.