In life insurance, the difference between the rate of interest the company guarantees to pay on proceeds left under settlement options and the higher interest usually allowed on such funds by the company. Also, the difference between the guaranteed rated return on cash value and the higher, current rate in universal life and other interest-sensitive policies.

Amount of interest an insurance company has earned on its investments beyond what it needs to cover its expenses and the cost of claims. These earnings are shared with policyholders in a variety of ways depending on the kind of policy a person owns.

The amount of interest above the guaranteed amount, that an insurance company pays on a settlement option when interest rates are high.