Oracle® Insurance Policy Administration 9.1.0.0.0 E15811-01

# Dollar Cost Averaging

Dollar cost averaging (DCA) is a periodic investment program that does not guarantee profits or protect against losses in a declining market. The idea is based on continuous investing, counting on fluctuating price levels in order to lower the inherent risk in investing lump sums at one point in time. DCA is different than AutoPay in that all of the money is contributed from the start and placed in a more conservative fund, such as a Money Market fund, and then gradually transferred into higher risk funds.

Default allocations for DCA are set-up from the Allocation link in the left navigation menu. Once they have been configured, you can change them in the Activity window from the top Allocation link.

Note: The deferred annuity segment must have the Dollar Cost Averaging (DCA) radio button set to Yes if you want to use DCA for the policy.

Note: You can not select both DCA and Rebalance in the Deferred Annuity segment. You must select one or the other.

When you select Allocation on the left navigation menu, all allocation types will display. You want to set-up the DCA Funds allocation section.