Definitions for "Guaranteed Interest Rate"
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.