Definition of "Accumulation Units"

With some unit linked life insurance contracts the life insurance company can account for their up front charges by way of accumulation units. If the plan does not reach maturity these will be no value bearing units but if the plan does reach maturity then the units will be converted to value bearing ones called capital units. Money paid in or transferred into an investment division of the Separate Account of a variable annuity is credited in the form of accumulation units. Any increase or decrease in value is based upon the investment performance of the corresponding underlying investment portfolio.