How frequently are the cash values of the separate accounts calculated?

• A. Daily
• B. Weekly
• C. Monthly
• D. Annually

Answer: (A)

In separate accounts for variable contracts, the cash value is tied to the market value of underlying subaccounts, which change every day. To give you an accurate amount for surrender, withdrawals, or benefit calculations, the insurer marks each subaccount to its current net asset value daily and sums them up. That daily valuation captures real-time performance of the investments and keeps the cash value aligned with actual market values. While certain charges may be assessed on a monthly basis, the account value itself is updated daily to reflect market movements. Setting any longer interval (weekly, monthly, or annually) would lag behind price changes and produce values that aren’t true representations of the current worth.