Sentences with phrase «guaranteed minimum rate»

Regardless of market swings, this financial product guarantees a minimum rate of return for a fixed number of years.
Regardless of market swings, this financial product guarantees a minimum rate of return for a fixed number of years.
A fixed annuity guarantees a minimum rate of interest on your money and you receive a fixed number of payments from the insurance company.
The premiums you pay are guaranteed and you are also guaranteed a minimum rate of interest on the cash value accumulation portion on most policies.
While your policy may guarantee a minimum rate of return ranging from 1 to 4 percent, your universal life insurance company will also invest a portion of your premiums into different investments.
Guaranteed Minimum Rates apply to savings notes, E bonds and EE bonds issued before May 1995.
The policy's cash value is credited with an interest rate that is set by the insurance company — and that may change, but will never be lower than a set guaranteed minimum rate of interest.
However, most universal coverage guarantees a minimum rate of return, though this guaranteed rate may not outpace increases in administrative expenses, mortality costs and under - performing investments
If you'd be more comfortable with an annuity that guarantees a minimum rate of return on all of the funds in your annuity, you may want to consider a traditional fixed annuity instead.
The guaranteed minimum rate of return is one of the defining characteristics of the State GRA.
Fixed annuities, unlike variable annuities, offer a guaranteed minimum rate of return.
Some forms of permanent life insurance policies offer a guaranteed minimum rate of return.
This is an example based on a current interest rate of 1.05 % (guaranteed minimum rate of 1.00 %).
A retirement vehicle that combines the benefits of a traditional fixed annuity, including a guaranteed minimum rate of return, with the potential to earn additional growth linked to the return of an index.
IUL policies typically offer a guaranteed minimum rate of return that is near 3 % in the fixed account and 0 - 1 % in the indexed accounts.
But this time let's see how a guaranteed minimum rate would impact the outcome of a market that is up and down for many years in a row.
Fixed annuities, unlike variable annuities, offer a guaranteed minimum rate of return.
Most section 529 college savings plans offer a money market fund or a protected principal fund, and some even have a guaranteed option which protects the principal and guarantees a minimum rate of return (typically at least 3 %).
A guaranteed minimum rate of return on an account is another type of rider you can purchase.
Although the rate may be adjusted, it should never fall below a guaranteed minimum rate specified in the contract.
Although the rate on a fixed annuity may be adjusted, it will never fall below a guaranteed minimum rate specified in the annuity contract.
That's why, although the growth might be small compared to other investment options, there is a guaranteed minimum rate.
Bonds purchased in this time earned interest on a graduated scale for 5 years and then started earning interest at either guaranteed minimum rates or market - based rates, whichever is higher.
The annuity also has a guaranteed minimum rate of return, which is contingent on holding the indexed annuity until the end of the term.
The guaranteed minimum rate was set at the time of purchase while the market rate is based on the 5 - year U.S. Treasury securities yields calculated semiannually.
A bond's Guaranteed Minimum Rate is established when the bond is issued and is subject to change at the beginning of each extended maturity period.
Issued 1980 through April 1995 - Bonds purchased in this time earned interest on a graduated scale for 5 years and then started earning interest at either guaranteed minimum rates or market - based rates, whichever is higher.
Some forms of permanent life insurance policies offer a guaranteed minimum rate of return.
That's why, although the growth might be small compared to other investment options, there is a guaranteed minimum rate.
Universal Life insurance is a permanent life insurance plan that has built - in options and features like payment flexibility, adjustable death benefit, lapse protection and a guaranteed minimum rate.
A traditional whole life insurance policy gives you a guaranteed minimum rate of return on your cash value portion.
There's a guaranteed minimum rate of return on your cash - value account, so your balance will grow over time, even if the market doesn't.
IUL policies provide for more flexibility and often a guaranteed minimum rate of return in the cash account.
The policy offers a choice of two indexed accounts or two fixed interest accounts with a guaranteed minimum rate of return.
The cash value of a the universal life insurance contract will pay at least a guaranteed minimum rate of interest, set by law to be no less than 2 %.
Universal life insurance pays a guaranteed minimum rate of return (2 % by law) or higher when prevailing interest rates are higher.
The cash value builds from a portion of the premiums paid into the policy and has a guaranteed minimum rate of return on investment, similar to a savings account but with a higher interest rate.
Some universal life policies, such as guaranteed universal life insurance, also known as GULs, guarantee a minimum rate of return on investment.
This policy can build cash value at a guaranteed minimum rate.
If the investments made by the insurance company perform well, then you also benefit, but if they do poorly then at best you will only get the guaranteed minimum rate of return.
Whole Life Insurance offers longer - term life coverage with the ability to build cash value at a guaranteed minimum rate.
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