Fixed Annuity-The sum of principal plus interest earned, minus withdrawals. Variable Annuity-The sum of amounts invested in the general account (or fixed account) and the current value of the investment divisions of the separate account, minus withdrawals.
In a deferred annuity, the premiums paid by the contract owner, reduced by withdrawals and fees, adjusted for earnings.
The value of the policy prior to deduction of any surren der charges. The accumulation value less surrender charge is often called the cash value or cash surrender value. The net cash value is the cash value less any policy loans.
In Account Summary, the value of the annuity on the specified "as of date." Upon surrender of this policy, this value may be reduced by a surrender charge, policy fee, or outstanding loan.
The formula involved will determine the value of each sub-account. These have a daily valuation and will be affected by investment performance as well as a deduction based on pro-rated daily expenses such as management fees.
Describes the total of all premiums paid and interest credited to the Universal life account before deductions for any expenses, loans or surrenders.
A term used in Universal Life policies to describe the total of all premiums paid and interest credited to the account before deductions for any expenses, loans or surrenders.
A certain percentage of each premium is deducted as an expense charge, and the rest of your payment - the net premium - is deposited into your policy's accumulation value. Once a month, Transamerica takes out a monthly deduction from the accumulation value for the cost of providing insurance coverage for that month. Any requested partial surrenders are also deducted from the accumulation value. The balance that remains in the accumulation value earns interest according to the terms of your policy. Interest is credited based on the date premiums are received, so itâ€(tm)s important to pay your premiums on a timely basis. Some policies also provide special credits for the timely payment of required premiums.
In adjustable, equity indexed, variable universal and universal life policies, the accumulation value is equal to the policy's cash value before the deduction of any applicable surrender charges when determining the policy's net surrender vale.
The sum of premiums and earnings, minus contract charges and any withdrawals.
The net amount paid by the contract owner for a deferred annuity plus interest earned, less the amount of any withdrawals and fees.
