Accumulation Unit
Money paid in or transferred into an investment division of the Separate Account is credited in the form of accumulation units. Any increase or decrease in value is based upon the investment performance of the corresponding underlying investment portfolio.

After Tax Savings
Term used to describe investments or contracts purchased with money that has already been taxed. Also known as "non-qualified" investments or contracts.

Annual Step-up Death Benefit
A type of variable annuity death benefit available in Preference Plus Select ® that can protect purchase payments and earnings by locking in performance gains each year on the contract anniversary. The key benefit is that it can provide a safety net against market downturns.

Annuitant
The person(s) on whose life the income payments are based. The contract owner decides who the annuitant(s) will be.

Annuitize
To convert the account balance under a deferred annuity contract into a stream of income, either for one or more lifetimes or a specific period of time.

Annuity
A tax-deferred contract that can provide an income for a specified time period, such as a number of years or for life. There are two types of annuities: deferred annuities, which allow you to grow your assets tax deferred and convert your account balance to income payments at a later date, and immediate annuities, which generally allow you to receive income payments right away.

Annuity Date
The date when your annuity income payments begin. This date usually appears in your annuity contract. You may be able to change this date, with limitations, before you reach the annuity or maturity date.

Asset Allocation
A financial strategy for investing money into various asset classes - such as stocks, bonds and cash - based upon your financial goals, risk tolerance and time horizon. Asset allocation has two main advantages: it can help increase investment returns and reduce risk.

Benchmark Index
Commonly refers to stock or bond indexes used to measure market performance and to compare the relative performance of an investment portfolio. Investing directly into an index is not possible. In addition, these benchmark indexes do not have transaction costs and other expenses as does an investment portfolio.

Beneficiary
Generally, the person(s) who receive(s) money upon the death of the annuity's contract owner or annuitant. The contract owner decides who the beneficiary will be.

Bonds
An IOU or promissory note issued by companies or governments and their agencies. Bonds provide income and some growth potential but not as much growth potential or historical price fluctuations as stocks. The amount of interest paid by a bond varies depending on its credit risk (the risk the issuer will repay the loan) and on its maturity risk. High quality, short-term bonds generally pay the lowest yields, and low quality, long-term bonds pay higher yields.

Cash Equivalents
A security that can be readily converted into cash (e.g. Treasury bill or money market fund).

Contract Owner
The person(s) or entity who purchases the annuity and has all rights to the contract. In a variable deferred annuity, like Preference Plus Select for example, this person can make investment decisions, transfer money among funding options, make withdrawals, and name the annuitant (usually the contract owner) and the beneficiary.

Credit Risk
The risk that a creditor or bond issuer will not pay the interest and/or principal owed when it is due.

Death Benefit
The guarantee that if you should die before you convert your variable annuity into regular income payments (annuitize your contract), your annuity's beneficiaries will receive the higher of the account value or a different amount specified in the deferred annuity (such as the amount you contributed to the annuity, less withdrawals). In many variable annuities, the death benefit can increase over time.

Deferred Annuity
A type of personal retirement account that provides tax-deferred growth potential for long-term goals, such as retirement. When you are ready to receive income payments, the deferred annuity provides many choices, including guaranteed income for life. There are two types of deferred annuities: fixed and variable.

Diversification
A financial strategy to help reduce risk by spreading your assets across different asset classes, such as stocks and bonds, or across different types of securities within the same asset class. For example, you can diversify your stock holdings into stocks of different industries.

Dollar Cost Averaging
A financial strategy of making investments at regular intervals with a fixed dollar amount. A key benefit is that over time, your average per unit cost should be lower than either the market high or the average price. Dollar cost averaging does not guarantee a profit or protect against a loss. It involves continuous investment in securities regardless of fluctuating prices. You should consider your financial ability to continue purchases through periods of low price levels.