Prime rate.... Prime plus or minus..I don't recognize can someone push for??
The question I be asked was surrounded by regards to the rate of return of a UL enthusiasm insurance contract. The gentleman asked in the region of how the interest is credited to the accounts cash attraction. Any financial advisors out there?
Answers:
The "prime" they are discussion about is the "prime interest rate" and is manipulate by actions by the Federal Reserve Board and charged by bank and lenders, etc.
In this case, here is a rate of return of the cash portion of this Universal Life policy.
That rate of return is peg to the prime interest rate. "Plus or Minus" refers to whether the rate of return is higher or lower than the prime interest rate at any given time.
Since the prime interest rate is manipulate often by the Fed, the rate fluctuates greatly.
Other Answers:
The interest rate of a UL policy vary from company to company, and will also vary over time. The current rate this male is receiving will be disclosed on his policy statement.