What is the approximate minimum guaranteed interest rate for Universal Life policies?

The minimum guaranteed interest rate for Universal Life insurance policies is designed to provide policyholders with a level of security, ensuring that their cash value will earn interest at a specified rate. Typically, this rate is set by the insurance company and is influenced by market conditions, but the standard minimum guaranteed interest rate for Universal Life policies is around 4%. This means that regardless of market performance, policyholders can expect their cash value to grow at this baseline rate, enhancing the appeal of Universal Life insurance as a long-term financial product.

Having a guaranteed interest rate helps investors and policyholders plan their financial future with some level of predictability, distinguishing it from other types of life insurance policies that may not offer such guarantees. This assurance is particularly vital for those who wish to maintain a stable investment as part of their overall financial strategy.