General Account

"General Account" refers to the collective investment portfolio held by insurance companies, where they pool the premiums received from policyholders.

Unlike separate accounts where assets are segregated and linked to specific policies, the general account combines assets from various sources. The funds in this account are used by the insurance company to pay out claims, benefits, operational costs, and other liabilities.

For policyholders, the general account plays a crucial role in traditional insurance products like whole life or universal life policies. The interest rates or dividends they receive on such policies are often influenced by the performance of the general account.