Fixed-Rate Interest Account

Fixed-Rate Interest Account refers to a portion of the policyholder's cash value that is credited with interest at a predetermined, guaranteed rate.

Unlike the indexed accounts, which have returns tied to the performance of a market index, the Fixed-Rate Interest Account offers stable and consistent growth irrespective of market fluctuations.

Policyholders may choose to allocate some or all of their cash value to this account to ensure a minimum level of growth and as a safeguard against market volatility. The guaranteed interest rate in the Fixed-Rate Interest Account is usually set by the insurance company and may vary from policy to policy.