The minimum rate of interest guaranteed to be creditied to a life insurance policy or annuity contract.
In permanent life insurance, a term used to designate the minimum annual rate of interest used in calculating policy reserves from year to year, or annual increases in dividend accumulations, or the interest factor in proceeds held under settlement option, or the amount payable under the interest income option, etc. Also refers to the minimum rate credited to cash value in interest-sensitive policies.
That interest rate which is stated by the company to be paid on funds in the guaranteed account.
The percentage return that is stated by the company to be paid on funds in an annuity.
also called technical interest rate. The lowest return on the savings guaranteed to the policyholders in a pension company. The guaranteed interest rate is used to calculate the relationship between paid-in premiums and the guaranteed benefits to policyholders in a pension company under the insurance contract. The interest rate is based on a number of assumptions regarding risk of disability, mortality, and interest rates and costs.
The minimum rate of interest insurance company agrees to pay each year on a fixed annuity (usually 3%). Also known as Minimum Guaranteed Interest Rate.
This is the minimum interest rate that can be credited to a policy. On whole life and universal life policies, the guaranteed minimum rate is usually from 3 to 4 percent.
In a fixed annuity, the minimum interest rate (e.g., 3%) that is guaranteed by the insurance company to be credited each year to the cash value.