Historically, periods of rising interest rates have been associated with stronger returns: From 1979 to 2012, total returns to the NCREIF Property Index averaged 9.3 percent annually, compared with 12.7 percent
annually during periods of rising interest rates.
During periods of rising interest rates - that is, where investors were optimistic that both growth and inflation would materialize - stocks climbed 11 percent on average.
Certainly, it has offered healthy growth, if not yield,
during periods of rising interest rates.
During periods of rising interest rates, the base rate will also increase, creating a coupon rate that keeps pace with current interest rates.
During periods of rising interest rates, bond funds can lose value.
This could mean that
during periods of rising interest rates, universal life insurance policy holders may see their cash values increase at a rapid rate compared to those in whole life insurance policies.
Fixed income securities are subject to increased loss of principal
during periods of rising interest rates.
During periods of rising interest rates, RGA may be contractually obligated to increase the crediting rates on its reinsurance contracts that have cash values, but it may not have the ability to immediately acquire investments with interest rates sufficient to offset the increased crediting rates on its reinsurance contracts.
This could mean that
during periods of rising interest rates, universal life insurance policy holders may see their cash values increase at a rapid rate compared to those in whole life insurance policies.
What this means is
during periods of rising interest rates, the cash value of your universal life insurance policy could increase rapidly.