What is an annuity prospectus?
The insurance company, which sells variable annuity, must provide an overview of contracts, called anuity prospectus, to all potential customers. It helps customers to understand the details, costs, and the benefits of the annual variable contract. The purpose of the annual prospectus is to help consumers make informed decisions on the purchase of variable annuity. Fixed annuity prospectuses are less common and detailed information is usually provided to consumers in other formats. Financial peaks usually include total resources assigned to every investment and their past performance. Instructions for downloading and moving funds between investment options are generally included in the prospectus.
Various NT investment in the annual contract is called sub -accounts. These sub -accounts are similar to mutual funds and the revenues are tied to the stock market. The Annuity Prospect contains detailed information about all available accounts with a particular annuity. This information includes an investment objective, fund manager,Investing style and stocks held in each sub -account. Usually it is part of a low, fixed investment option, such as the money market account, which is not directly bound to the stock market performance.
In the United States, it is registered with variable annuity to regulate securities that are regulated by the Securities and Exchange Commission (SEC). It is a SEC that requires consumers to be provided by an annuity prospectus before purchasing an annuity variable. The prospectus may be delivered in the form of a printed copy and sent or handed over to a tzázník. It can also be published on the company's website where the customer is easy to access and print.
SEC also requires that owners of contracts with variable annuity be informed of any changes in the available investment options. If changes are made in an annual prospectus, issuing an insurance company sends an update noBo accessory for all current holders of contracts with variable annuity. All accessories should also be provided to new customers together with the prospectus until the revised prospectuses provide the issuing insurance company.
Fixed annual contracts are not securities products. As a result, SEC is not regulated. Although the prospectus is not generally required, some insurance companies issue fixed annuity prospectuses. Other insurance companies provide detailed information on a fixed book agreement in the brochure or in another format.
The Annuity Prospect is generally a long document. For the prospectus it is not unusual over 100 pages long. Potential variable annuity buyers may check all information about the annuity contract and ensure that the contract suits the buyer's investment goals. Individuals can also rely on their investment advisors to review this information and choose a variable annuity that best suits their investment needs. In this case must be prospeKT still accessible by a person who actually purchases a contract with an annuity variable.