Why does the rate of return differ, between different variable products, for the same investment option?
Annualized rates of return may differ because the fees and expenses associated with the particular investment option are different under the two products. Check your policy/contract prospectus for details on the fees and expenses of the investment portfolios. Note that Annualized Rates of Return are not representative of the actual return you would receive under your contract. Changes in contract values depend not only on the investment performance of the various options, but also on applicable contract and administrative charges, applicable sales charges and the mortality and expense risk charges that are deducted. Contributions made to your contract, as well as any loans or withdrawals, will also affect its values.
Related Questions
- Between different variable annuity contracts, why does the rate of return for the same investment option differ?
- Why does the rate of return differ, between different variable products, for the same investment option?
- Why do unit values for the same investment option differ between different variable products?
