Q: What is a "Shadow Fund"?
A: Your Policy (contract) may define one or more Shadow Funds, in addition to its Account Value.
A Shadow Fund is very similar to the Account Value. Most things that add to your Account Value will add a similar amount to a Shadow Fund. (This is why they are called Shadow, in that they shadow or parallel the Account Value.)
However, a Shadow Fund's interest (growth) rate is usually fixed. And its dollar value cannot be withdrawn directly. Instead, it must be used for other restricted purposes, such as Annuitization, GLIB or Death Benefits.
A Shadow Fund can be used to:
*Set a floor (lower limit) for your real account value
*Provide a dollar amount to be used for Annuitization, or GLIB, or Death Benefit, or Surrender Value.
A: Your Policy (contract) may define one or more Shadow Funds, in addition to its Account Value.
A Shadow Fund is very similar to the Account Value. Most things that add to your Account Value will add a similar amount to a Shadow Fund. (This is why they are called Shadow, in that they shadow or parallel the Account Value.)
However, a Shadow Fund's interest (growth) rate is usually fixed. And its dollar value cannot be withdrawn directly. Instead, it must be used for other restricted purposes, such as Annuitization, GLIB or Death Benefits.
A Shadow Fund can be used to:
*Set a floor (lower limit) for your real account value
*Provide a dollar amount to be used for Annuitization, or GLIB, or Death Benefit, or Surrender Value.
