Life · Chapter 9 · Fixed, Variable & Indexed
Annuity Units
Definition
At annuitization, accumulation units are converted into annuity units — the measure used to compute each payment. The NUMBER of units per payment is fixed at annuitization; each payment = that fixed number × a fluctuating unit VALUE.
Exam tip
Fixed number of units, floating unit value — that's why a variable annuity's income changes month to month.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms