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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The contractual payments are pledged to debt service on these bonds and are received from a subaccount within the TFA that is held in the state's general fund.
The primary account is in column A, and the subaccount is in column B.
The newly-launched service will enable Meezan Bank's customers having CDC subaccount (with CDC Investors-Account, Participant-Sub Account or Broker-Sub Account) to subscribe to the public offering of shares online via www.cdceipo.com.
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.
The insurer guarantees principal and interest (in the case of a fixed annuity; a variable annuity is subject to the performance of the underlying selected subaccounts), and the promise (if purchased) that the annuitant can never outlive the income stream.
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.
With these contracts, the cash deposited into the annuity is invested in various individual subaccounts that represent investments in equity and fixed-income mutual funds chosen by the annuitant.
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).
Weiss Ratings looked for variable annuities with no initial sales charge also know 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
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?