Definition
Separate Account
The insurance-company sub-account whose investment results flow directly to the policy's cash value.
Full definition
A separate account is a legally segregated account of the insurance company whose assets are held for the benefit of variable insurance contract owners and are not part of the carrier's general account. The performance of PPLI cash value tracks the separate account, which typically invests through IDFs.
Related terms
Availability, tax treatment, and policy design depend on jurisdiction, carrier, investor qualification, and applicable law. simpleppli.com provides general educational information only — not tax, legal, insurance, or investment advice. Consult qualified tax counsel, insurance counsel, and licensed insurance professionals before implementing any PPLI structure.