Accumulation unit

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Accumulation Unit

1. In a unit trust, a structure whereby a unit holder automatically reinvests profits from the trust, rather than accepts them as dividends. See also: DRIP.

2. In a variable annuity, the shares that the annuity has purchased with the money the annuitant has invested in it.

Accumulation unit.

Accumulation units are the shares you own in the separate account funds of a variable annuity during the period you're putting money into your annuity.

If you own the annuity in a 401(k) plan, each time you make a contribution that amount is added to one or more of the separate account funds to buy additional accumulation units.

The value of your annuity is figured by multiplying the number of units you own by the dollar value of each unit. During the accumulation phase, that value changes to reflect the changing performance of the underlying investments in the separate account funds.

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In the accumulation phase of a variable deferred annuity, each premium payment purchases, after applicable contract charges are deducted, a number of accumulation units for each investment subaccountchosen by the contract holder.
The accumulation unit values of these accounts on the day his premium is received are set forth in the table below, along with the changes in the subaccounts that will occur when Mr.
During the accumulation phase premium payments are applied toward the purchase of accumulation units.
If variable benefits are to be received the accumulation units are first exchanged for annuity units.
As additional premiums are paid, the annuity holder is credited with additional accumulation units.
Your units may either be income units or accumulation units.
A local independent financial adviser can discuss the exact choice, but one possibility is Edinburgh Fund of Funds accumulation units (0800 028 6789).
The initial charges are usually taken in initial/capital units, reduced unit allocation or accumulation units.
The contribution or premium is allocated to accumulation Units in the Fund at the offer price.
Any contract "gain" is the result of increases in the value of the accumulation units chosen.