The value the IRS places on the benefits provided to an employee under a split dollar or qualified pension plan. Essentially it is the term insurance cost for the "pure protection" (death benefit less any cash value) provided to the employee. This amount is reportable as taxable income by the employee, but is offset by any contributions the employee makes. The term insurance rate used to determine the value of the benefit may be based on the insurer's published rates or the government's PS 58 rates.

A form of annuity contract sold by life insurance companies that allows the contract owner to select the investment funds and assume the investment risk. Variable annuities guarantee a payment, usually at retirement. The amount of the payout will vary, however, with the value of the underlying investment funds. Variable annuities may only be sold through life insurance agents, who in addition to being licensed life insurance agents, are registered representatives. Both deferred and immediate variable annuity contracts are available.

An annuity that provides retirement income payments which fluctuate according to the investment performance of the underlying mutual funds. The insurer guarantees that payments will continue for the lifetime of the annuitant, but it cannot guarantee the amount of the payment or the performance of the account.

A second-to-die policy offering the opportunity to direct your net premiums and cash value into investment divisions of your choice.

Whole life, or universal life, contracts having values that fluctuate according to the investment performance of the underlying mutual funds. While they have no guaranteed cash value, they often have a minimum guaranteed death benefit. Unlike conventional products, variable products are regulated by the Securities and Exchange Commission and sold with a prospectus.

An annuity plan payout option which is tied into the performance of the securities markets. The amount of each payment will fluctuate according to the performance of the underlying funds.

A provision under which the company sets the policy's loan interest rate by an outside index (Moody's Index of Seasoned Corporate Bonds). The rate is adjusted periodically as stated in the contract.

A universal life policy which offers the policyowner a choice of variable, separate, investment accounts in which to deposit funds. The variable account performance is not guaranteed and policy values will increase or decrease accordingly. Administrative procedures must comply with Securities and Exchange Commission requirements.