GCPA Glossary

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U.S. Treasury notes
An IOU issued by the U.S. government. Treasury notes (and treasury bills) are considered to be generally low risk investments if held to maturity. Notes are issued from 2-10 year time periods.

Unit value
The unit value (accumulation unit or annuity unit) is a standard measurement for exchange. The "unit" is used to calculate the contract value on the variable portion of a variable annuity or life contract. For example, if you own 100 units of a given fund (or subaccount) and the unit value of each unit is $2.35, your account value for that fund would be $235. If the unit value increases to $3, the value of your account is $300. It is important to note that the number of units does not change; you still own 100 units. The account value equals the unit value x the number of units owned.

Universal life insurance
A form of life insurance first marketed in the early 1980s, that combines the economical protection of term life insurance with a cash value portion. Premiums are invested in a tax-deferred account earning interest. The policy is flexible; that is, as age and income change, a policyholder can increase or decrease premium payments and coverage, or shift a certain portion of premiums into the account, without additional sales charges.

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