A customer is considering buying a fixed annuity for a guaranteed stream of income in retirement but is concerned about inflation and missing out on market growth. After a conversation with her registered representative (RR), the customer learns that a variable annuity may be more suitable given her willingness to assume a certain amount of risk to meet her objectives. The assumed interest rate that the RR shows the customer as part of a variable annuity product is a projection of performance in the:

The general account is where the insurance company's fixed products are held, and it typically offers guaranteed returns. The assumed interest rate for variable annuities, however, specifically pertains to the separate account's performance and does not include the general account, which does not fluctuate based on market conditions.

Accumulation units represent the measure of ownership in the separate account and are used to calculate the value of the contract. While they relate to the variable annuity's performance, they do not represent the projection of performance itself; rather, they reflect the performance after it has occurred.

Mutual funds may be one of the investment options within the separate account, but the assumed interest rate is not a projection of the mutual funds directly. Instead, it reflects the overall expected performance of the entire separate account, which may include various investment vehicles, not just mutual funds.