Within CUOLI there are generally two product options available, General Account and Separate Account. General Account assets are held in the “general account” of the carrier. With Separate Account products, the policyholder determines the investment strategy and assets are held in a “separate account.”


General Account

Separate Account



Typically, high-quality corporate bonds and collateralized mortgages.

Same as General Account, however, depends on portfolio selected.


Crediting rate declared periodically. Depends on underlying general account yield.

Based on yields of underlying assets in


Guaranteed Rates 

Typically range from 1 - 3%.

No guaranteed minimum crediting rates.

Investments and Investment Risk

Investments contained in carrier’s general account. Carrier makes all investment decisions. Typically, inherit less earnings volatility.

Policyholder chooses asset managers and investment strategy subject to stable value restrictions. Allows greater investment strategy flexibility. Typically, experience more earnings volatility depending upon asset class.


Cash surrender values pursuant to ASC 325 (FAS 85-4).

Mark-to-market cash surrender values pursuant to ASC 325 (FAS 85-4).

Credit Risk 

Full exposure to general account.

Credit risk of underlying asset default borne by carrier.

Market value of assets protected from general creditors of insurance company.

Credit risk of underlying asset borne by policyholder.


*Within separate account products funds can typically still be invested in a carrier’s general account.