Annuities That Pay Benefits Based On Units Rather Than Dollars.

Shawn Plummer

CEO, The Annuity Expert

In the world of annuities, there are a number of different types. One type that is often overlooked is an annuity that pays benefits based on units rather than specific dollar amounts.

Which annuities pay benefits based on units rather than specific dollar amounts?

A contract holder’s equity in a variable annuity is measured in units, and there are two types of unit measurements: accumulation units and annuity units.

Accumulation Units

During the accumulation period, a variable annuity owner’s units are designated as accumulation units. In accordance with the premium payments made and the subsequent performance of the separate account, both the number of units and their value will vary.

Annuity Units

When the annuity period begins, accumulation units are transformed into annuity units. The value of the annuity units will differ based on the daily performance of the separate account, and periodic benefit checks will change accordingly.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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