How rebalancing helps
As time goes by, and the markets experience their ups and downs, your portfolio may experience gains in some areas and losses in others, causing your actual portfolio and your asset allocation plan to get out of sync. You will need to make adjustments to counteract the fact that different assets have performed differently and now comprise different percentages of your variable annuity.
These adjustments are called rebalancing. While asset allocation helps you determine what investment options you should choose in your portfolio and establishes the percentages of each investment style for your whole portfolio value, these percentage values should be maintained. And for asset allocation to work, the variable annuity must not only be rebalanced, but rebalanced at pre-determined intervals of time.
Rebalancing can happen automatically in your variable annuity contract. This helps simplify the process and additionally prevents you from being tempted to try to time the market. Your agent can help you decide how often this automated rebalancing should happen. You won't be subject to extra charges or taxes as a result of this service. Asset allocation and rebalancing do not assure a profit or guarantee against a loss in a declining market.
You can receive a prospectus from your Horace Mann representative or by calling 800-999-1030. You should read the contract prospectus and the underlying investment option prospectuses carefully and consider the investment objectives, risks and charges and expenses carefully before you invest or send money. The prospectuses will provide complete information about Horace Mann's variable annuity contracts, Horace Mann Life Insurance Company and the underlying investment options. As with all securities, variable annuities involve a risk of loss, including a loss of principal. Horace Mann Life Insurance Company underwrites these variable annuity contracts, which are offered by Horace Mann Investors, Inc., member FINRA. Horace Mann Investors, Inc. is located at #1 Horace Mann Plaza, Springfield, IL 62715.
The guarantees mentioned are provided by Horace Mann Life Insurance Company and are based on the financial stability of the company.