Oracle® Insurance Policy Administration 9.1.0.0.0 E15811-01

# DCA Start

Dollar Cost Averaging (DCA) is a technique designed to reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts. Instead of investing assets in a lump sum, the investor works his way into a position by slowly buying smaller amounts over a longer period of time. This spreads the cost basis out over several years, providing insulation against changes in market price.

DCA Start activity is spawned when DCA is indicated on the deferred annuity segment. This start date is the date you entered when configuring the deferred annuity segment.

In order to set-up DCA you must configure your Deferred Annuity to use DCA. You do this by selecting Yes in the DCA field and entering the following field information.

Start Date: must be 30 days after the effective date.

Frequency: the payment schedule.

Amount: the amount that is automatically paid.

Termination Date: when payments should end.

You also need to configure DCA allocations using Allocations on the left navigation menu.