Annuity unit

Annuity Unit

Shares in an annuity. When one purchases an annuity, one purchases a fixed number of annuity units, which are set to represent the value of the portfolio in which the annuity invests. When one begins to receive payments from the annuity, this has the effect of selling annuity units so the annuitant may receive cash from them.

Annuity unit.

Annuity units are the shares you own in variable annuity subaccounts, also called annuity funds or separate account funds, during the period you're receiving income from the annuity.

The number of your annuity units is fixed at the time that you buy the income annuity contract, or when you annuitize your deferred variable annuity.

While the number of units does not change, the value of each unit fluctuates to reflect the performance of the underlying investments in the subaccount. That's why the income you receive from a variable annuity may differ from month to month.

References in periodicals archive ?
Global Banking News-April 3, 2015--Genworth seeking buyers for life and annuity unit
5 billion Citigroup's Travelers Life & Annuity unit and nearly all of Citigroup's international insurance businesses in a transaction that would make it North America's largest individual life insurer based on sales.
Owens joined Securian as a management services assistant analyst in 1999 and moved to the individual annuity unit in 2000.
TRAC now supports the attributes of an annuity offering, including multi- tier annuity unit pricing, guaranteed interest contracts and complex annuity distribution rules.
5 billion acquisition of Travelers' Life & Annuity unit.
Factors that partially offset these positives include challenges that LNC faces with respect to strong competition in the life insurance and asset accumulation sectors, particularly in the affluent market segment that LNC has targeted, and a continuing, albeit declining net outflow of funds within its annuity unit.
Under the agreement, GE will acquire 90% of the long term care insurance portfolio of Citigroup's Travelers Life & Annuity unit, as well as enter into a continuing marketing agreement with the distribution channels of both Citigroup and Travelers.
The Travelers Life & Annuity unit has leadership positions in individual and group annuities, life insurance and long term care insurance.
May, Senior Vice President and head of Independent Distribution for the Life & Annuity unit of Travelers, said, "We have worked with Gilman + Ciocia and their independent financial professionals for a number of years and believe that they have an approach to the growing financial planning and tax services business that provides Travelers a unique distribution capability.
In 2005, Securian merged its retirement plan and individual annuity units to focus on the accumulation and management of retirement assets at the retail, group and institutional levels.
Melone continued, "This appointment is an important step in our program of strengthening our management team, sharpening our focus on our core life insurance and annuity businesses, and creating a structure in which there is more accountability for the life and annuity units.