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Separate account |
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Separate account. An insurance company's separate account is established to hold the premiums you use to purchase funds included in variable annuity contracts the company offers. The separate account is distinct from the company's general account, which holds the company's assets as well as premiums for fixed annuities and fixed-income separate account funds. Assets in a company's separate account are not vulnerable to the claims of creditors, as assets in the general account are. But they can be affected by the ups and downs of the marketplace. Any gain or loss in the annuity's value results from the investment performance of the investments in the separate account funds you select. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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