Credited Rates account, insurance, allocation, english, benefit

Zesty

Can any one explain in plain english what is credited rates

- Life insurance goals - Maximize Net Interest Spread = Portfolio Interest Earned - Credited Rate applied to policy holders account

Is Credited rate some kind of allocation of estimated death benefit based on mortality rates

mik82

I think credited Rate shall be the return rate committed to policy holders for those policies with the characteristics of investment (not just insurance). Any one confirm ?

liangfeng

alta168 Wrote:
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> I think credited Rate shall be the return rate
> committed to policy holders for those policies
> with the characteristics of investment (not just
> insurance). Any one confirm ?


Credited rate is the weighted average contractual rate applied to all policies issued. GICS/LI/Annuities/etc. In theory weighted average duration should be equal between policies receiving a credited rate (liabilities) and assets. With duration of surplus and asset make up of surplus up to investment committee.



Edited 2 time(s). Last edit at Sunday, May 15, 2011 at 11:29AM by Paraguay.