Accumulation Units.

These are issued to owners of variable annuities during the accumulation period, as evidence of the annuitant's participation in the separate account.

Annuity.

(1) An amount of money payable yearly, or by extension, at other regular intervals; (2) An agreement by an insurer to make periodic payments that continue during the survival of the annuitant(s) or for a specified period.

Annuitant.

The person who is covered by an annuity and who will normally receive the benefits of the annuity.

Annuity Certain.

An annuity that pays income for a fixed number of years regardless of whether the insured lives or dies. If it pays for life after the certain period, it is called an "annuity certain and for life thereafter."

Annuity Due.

An annuity under which the benefits are paid at the beginning of the benefit period rather than at the end.

Annuity Option.

A method if liquidating and distributing an annuity's principal and interest so that it lasts for the lifetime of the annuitant.

Annuity Period. .

The period of time, usually at retirement, during which the annuitant begins to receive annuity payments or benefits from the insurance company.

Annuity With Period Certain .

An annuity that pays throughout the life of the insured, but also guarantees to pay income for a specific number of years regardless of whether the insured lives or dies. If the insured is living at the end of the time specified in the policy benefits continue beyond the guaranteed period until the death of the insured.

Assumed Interest Rate (AIR) .

An assumed value which is assigned to the annuitant's account during the annuity period. It is an estimated return for the separate account. Monthly annuity payments are based on the AIR in relation to the actual rate of return experienced by the separate account of a variable annuity.