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.

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On the surface, that data may indicate that the annuity's performance is merely random, given that about 29% of its subaccounts rated in the top 32.5% of their Morningstar-rated peer groups.

Looking for funds: variable-annuity writers consider their subaccounts to be the all-star team of the mutual-fund world, and they look carefully at performance, management and consistency to keep only the top players

Figure 2 A B C 1 Primary Subaccount Subaccount 2 Cash 3 Cash Checking 4 Cash Checking Wells Fargo 5 Cash Checking BofA While this would work if all accounts had a primary account and one subaccount, it wouldn't work if some accounts had multiple subaccounts, or, if some accounts had only a primary account, as illustrated in Figure 2.

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* Finally, the initial income paymentis divided by the value of the annuity unit for each subaccount chosen.

Understanding Deferred Variable Annuities' Two Phases

VUL products typically provide a wide range of investment options in their subaccounts. Miscolta says Pacific Life's current VULs offer 95 variable subaccounts, including several nontraditional and alternative investments.

Planning with variable universal life: it generates strong reactions: some advisors swear by it/while others swear at it

Depending upon the performance of their subaccount investments, the advantage of tax-deferred compounding could be substantial.

Choosing an annuity in 2014: the effect of low interest rates and higher tax rates

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?

Fun with FINRA: agents must educate, be educated, when selling variable annuities under new rules

MAS participated by a working paper on Saudi Arabia's experience in establishing a system of tourism information as well as preparing tourism subaccount in the Kingdom as "Guiding Model" for applying tourism subaccount.

Tourism job fairs a hit with Saudis

* The Trend: Variable annuity writers are showing interest in new investment options that actively hedge assets at the subaccount level.

Putting the 'new' in annuities: variable annuity writers have taken a new step in risk management by introducing investment options with hedge assets

Countries and years of data used for the analysis National Health Demographic Account RH & Health Subaccount Survey Ethiopia 2006 2005 Kenya 2006 2003 Malawi 2004 2004 Rwanda 20,022,006 20,002,005 Tanzania 20,022,006 19,992,004 Uganda 2006 2006 Table 2.

Assessing public and private sector contributions in reproductive health financing and utilization for six sub-Saharan African countries

When the fund grows to contain an amount equal to 5 percent of the state's general fund, the lottery money flows into a subaccount for school capital projects.

A small boost for schools

* Whether the trustee is a CPA or other professional, the trustee should ensure premiums are sufficient to cover any decrease in interest rate for universal life policies or investment subaccount results for variable universal life.

Trust-owned life insurance: the CPA's role: exposures related to serving as a trustee

Life insurance subaccount selection compared to the taxable alternative: Diversification: Asset Allocation: Style: Choices: Number of Managers: Number of Subaccounts: Money Manager Review and Replacement Policy: 18.