Subaccount

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Subaccount

A term used in bookkeeping. For example, the insurance expense account may have various different subcategories such as building and property insurance, auto/fleet insurance, general liability, environmental, professional liability, law enforcement, and other insurance.

Subaccount

An account within an account. For example, funds in a subaccount may be available only to a certain person, or may be used only for a certain purpose.

Subaccount.

The separate account funds to which you allocate your variable annuity premiums are sometimes called subaccounts.

Each subaccount is managed by an investment specialist, or team of specialists, who make buy and sell decisions based on the subaccount's objective and their analysts' research.

If you're comparing different contracts to decide which to purchase, among the factors to consider are the variety of subaccounts each contract offers, the past performance of those subaccounts, the experience of the professional manager, and the fees.

In evaluating the past performance and other details of the subaccounts a contract offers, or those you select in the contract you choose, you can use the prospectus the annuity company provides for each subaccount. You may also be able to find independent research from firms such as Morningstar, Inc., Standard & Poor's, and Lipper. However, past performance is not indicative of future results.

References in periodicals archive ?
Variable subaccounts invest in insurance dedicated funds so their performance will change daily with the market.
50% cash deposit and sell orders against at least 50% preexisting holding in CDS subaccounts maintained with KSL.
Several companies had come under regulatory scanner for jacking up their stock prices with their own purchases through investment via subaccounts of FIIs, which is illegal in India.
The firm is adding its sixth new fund this year and making sub-advisory changes to various mutual funds and variable annuity subaccounts.
Weiss Ratings looked for variable annuities with no initial sales charge also known as a front-end load, below average costs, a wide selection of mutual fund subaccounts with good performance, issued by insurance companies with a Weiss Financial Strength Rating of A (excellent), B (good) or C (fair).
Subaccounts can be created if the account category is so broad that it would permit taxable and nontaxable purchases to be coded to one account.
What if Justin had gone a bit further in his salesmanship, and talked about a special "blend" of subaccounts that he recommends for all his variable annuity clients who are in Fred's age group?
They provide open-end disclosures for open-end subaccounts and closed-end disclosures for closed-end subaccounts.
The funds are received into the IBAN account and redirected to subaccounts denominated in 12 currencies.
It offers 35 subaccounts, three asset allocation models and a money market fund.
I think what we're going to see over time are contracts with fewer subaccounts and subaccounts that are more streamlined," he says.
Navy and Marine Corps officials were not aware of the usefulness to separate the four operations subaccounts.