VA/L Subaccounts: Data Definitions: Nuts & Bolts

 Expenses

Subaccount Expenses

Contract Expenses

Purchase Information

Minimum Investments

Initial (Q)

Initial (NQ)

Listed for both qualified and non-qualified accounts (as denoted by Q, and NQ), this is the minimum dollar amount required to invest in a variable-annuity contract. Typically, the minimum amount to purchase a contract will differ for qualified and nonqualified accounts.

Qualified vs. non-qualified accounts Under a qualified plan, an investor may invest in the variable annuity with pretax dollars through an employee pension plan, such as a 401(k) or 403(b). Money builds up on a tax-deferred basis, and when the qualified investor makes a withdrawal or annuitizes, all contributions received are taxable income. A nonqualified account, on the other hand, is available only for after-tax dollars. Once again money builds up tax-deferred, but upon annuitization only the gain, not the initial investment, is taxable income.

Correspondence Information

This is the name, address, and phone number of the insurance company to which you can write or phone for additional information.

 

 Management

Subaccount Inception Date

The subaccount inception date gives the date on which the subaccount commenced operations.

Manager Name

The portfolio manager is the individual or individuals responsible for the overall fund strategy, as well as the buying and selling decisions of the securities in a fund's portfolio. Management teams may consist of many people, but if one manager is considered a central figure or lead manager, that individual's name will be printed. We also note the manager's tenure at the helm of the fund.

Manager Tenure

The number of years which the manager has been running the day-to-day operations of the underlying fund.

Fund Name

The name of the underlying fund.

Advisors

This is the company that or companies that are given primary responsibility for managing the underlying fund.

Subadvisors

In some cases, the advisor employs another company, called the subadvisor, to handle the underlying fund's day-to-day management. In these instances, the portfolio manager generally works for the underlying fund's subadvisor, and not the advisor.