Does Life Insurance Earn Interest?
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63333 POINTSview profilePeggy MaceMost of the U.S.If you purchase a permanent policy such as Universal Life, Whole Life, or Indexed Universal Life, the life insurance policy will earn interest. It will have a guaranteed interest rate and an interest rate that it "could" earn, which is higher than the guaranteed interest rate. Term life insurance does not earn interest.Answered on May 26, 2013flag this answer
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaOne of the crediting methods of life insurance is interest accumulation. Interest is generally credited after the policy expenses have been deducted from the cash value account. There are other crediting methods that use indices, both domestic and foreign as well as equities and bonds in separate sub accounts in variable life products.Answered on May 27, 2013+01+1 this answer
0flag this answerview more answers by David Racich- 220 POINTSview profileStephen RogersSelf-employed Employee Benefits Provider, Upland, CaliforniaDoes Life Insurance earn interest? There is one other way, other than the 2 answers given by Peggy Mace or Steve Savant, this is the interest that a Life insurance Company will pay on the death claim, from the date of death. This interest could accumulate if thee had been an investigation, or if the claim payment was delayed.Answered on May 27, 2013flag this answer
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