- Annuity Unit
- An accumulation unit for which the annuitant has annuitized their contract. This is a sub-account of the retiree's total accumulated annuity. These units represent a fixed share of ownership of the insurer's accounts portfolio.
When an insured person changes from accumulating wealth to spending their savings, they begin to draw on their saved money to finance their retirement. While saving, the insured party has made periodic payments to their life insurance company to purchase shares of ownership of a very large portfolio managed by the insurer. When the insured wants to start taking money out, they convert their total accumulated savings to start paying them their income. In order to accomplish this, the insured party purchases annuity units with the money that was formerly being saved as accumulation units.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Annuity (European financial arrangements) — An annuity can be defined as a contract which provides an income stream in return for an initial payment.Immediate annuityAn immediate annuity is an annuity for which the income stream begins at a time after the initial payment which is less than … Wikipedia
Accumulation Unit — 1) In the case of a variable annuity, a measurement of the value invested in the account during the accumulation period of the contract. The more funds you contribute to your annuity account, the more accumulation units you will build. 2) In the… … Investment dictionary
accumulation unit — Type of unit in a unit trust where the income is reinvested automatically, thereby increasing the price of the unit. * * * accumulation unit accumulation unit ➔ unit * * * accumulation unit UK US noun [C] FINANCE ► a share in an investment trust… … Financial and business terms
Actuarial notation — 1. net single premium of insurance (benefit 1 unit) 2. paid at the moment of death 3. for x year old person, for n years 4. life insurance 5. deferred (m year) 6. with double force of interestActuarial notation is a shorthand method to allow… … Wikipedia
insurance — /in shoor euhns, sherr /, n. 1. the act, system, or business of insuring property, life, one s person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a… … Universalium
Business and Industry Review — ▪ 1999 Introduction Overview Annual Average Rates of Growth of Manufacturing Output, 1980 97, Table Pattern of Output, 1994 97, Table Index Numbers of Production, Employment, and Productivity in Manufacturing Industries, Table (For Annual… … Universalium
Net asset value — (NAV) is a term used to describe the value of an entity s assets less the value of its liabilities. The term is most commonly used in relation to open ended or mutual funds because shares of such funds registered with the U.S. Securities and… … Wikipedia
Victoria Cross — For the abbreviation, see VC. For other uses, see Victoria Cross (disambiguation). Victoria Cross … Wikipedia
Liberty Place — One and Two Liberty Place General information Status Complete Type … Wikipedia
Panama — Panamanian /pan euh may nee euhn, mah /, adj., n. Panamic /pa nam ik/, adj. /pan euh mah , maw /, n. 1. a republic in S Central America. 2,693,417; 28,575 sq. mi. (74,010 sq. km). 2. Also called Panama City. a city in and the capital of Panama,… … Universalium