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Glossary of Variable Annuity Terms
Terms most often found in the prospectus.

Accumulation 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 dollar amount.

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 general.

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 account.

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 payments begin.

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.

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