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I have a question about whole life insurance. How is cash value determined? If I'm not mistaken, they take a portion of your insurance premium and put it in a "savings account" where it earns interest, correct? Is the interest rate usually fixed or variable? One would think with current low interest rates it may make sense to opt for term until rates rise if they are fixed...
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Jan 20, 2013 05:50
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The Jizzer posted:As a rule, the cash accumulation in whole life is at a fixed interest rate, but most whole life policies also return non-guaranteed dividends based on the carrier's profit, which can provide a significant boost in the actual return. Thanks for confirming. To just concentrate on the interest rate aspect, I would assume that fixed rates adjust with the current interest rate market, correct? Are there people that took out whole life in the 70's with some ridiculous fixed rates out there? ifuckedjesus fucked around with this message at 01:28 on Jan 23, 2013 |
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Jan 23, 2013 01:20
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