0
When are individuals guaranteed by an insurance company to earn a minimum interest rate on their investment?
Wiki User
∙ 10y ago
fixed annuity
Wiki User
∙ 10y ago
The guarantee of earning a minimum interest rate on an investment by an insurance company can vary depending on the specific policies and products offered. In some cases, individuals may be guaranteed a minimum interest rate when investing in certain types of annuities or guaranteed investment contracts (GICs). However, it is important to carefully review the terms and conditions of the specific insurance product to understand the guarantees and limitations.
Add your answer:
Earn +20 pts
In which of the following are individuals guaranteed by an insurance company to earn a minimum interest rate on their investment?
fixed annuity
Full form of GIC?
Guaranteed Investment Contract. Debt instrument issued by an insurance company, usually in a large denomination, and often bought for retirement plans. The interest rate paid is guaranteed, but the principal is not. also called guaranteed interest contract.Read more: http://www.investorwords.com/2170/GIC.html#ixzz1l1T6HnC1
What is Guaranteed minimum rate of interest Life Insurance?
fixed
Why do you need to report interest paid or earned on life insurance?
Whole life insurance also has an investment component, so money made on the investment is taxed. If you have term insurance, then there is no interest earned, since it is strictly insurance.
What is meant by the term guaranteed investment?
The term "guaranteed investment" typically refers to a stock, bond, or mutual fund, wherein the owner is guaranteed a principal repayment, as well as a fixed or floating interest rate for a pre-established period of time.
What is interest sensitive whole life insurance?
It is a guaranteed fixed premium permanent life insurance policy. It usually has a Guaranteed Minimum Cash Value that increases each year.
What is the benefit of fixed deposit interest rates?
Fixed deposit interest rates is a guaranteed interest rate for the entire term of an investment. They allow for the customer to earn high interest rates.
What can be the definition of fixed income investment?
A fixed-income investment generally pay interest on specific schedule with a promise to return the principle at maturity, but is not guaranteed. Basically they provide regular income that is predictable.
What is the current interest rates on a Halifax guaranteed reserve account?
what is the interest on£ 50,000 with Halifax guaranteed reserve
What is an Investment Interest calculator?
An investment interest calculator will calculate the amount of interest that you will have to pay on an investment on a home, car, or other type of big expense.
Can fees paid to a broker be classified as investment interest expenses?
No. Broker Fees are investment expenses but are not investment interest expenses.
What determines cash value in life insurance polices?
A simple pattern that determines the cash value of the policy is this: Amounts that client paid (monthly premiums) including any extra contributions. Plus: Money credited to the account: Interest or Dividends or Return. This may be guaranteed or not guaranteed depending on the contract. This amount has to do with the profitability of the insurance company, current interest rates, or performance of the investment accounts if the policy is variable life. Minus: Mortality charges (cost of life insurance, whether calculated on yearly basis or averaged.) Minus: Sales (commissions paid to agent), Administrative/ Service Expenses that the insurance company charged this account; Minus: Any outstanding loans, accumulated interests on the loan.
