Annuity Units

Units of payment from annuities. They are disbursed to policyholders when it comes time to begin paying them. There are four factors that determine the dollar value of these units: 1) the dollar value of each accumulation unit, 2) an assumed interest rate, 3) mortality tables based on the annuitant’s age and sex , and 4) an assumed expense factor (not to exceed 1 percent).