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The Impact of Recent Interest Rate Increases on Universal Life Crediting Rates and Whole Life Dividend Interest Rates

M Financial | 16 February 2017 | Products
Advocacy, Crediting Rates, Dividend Interest Rates (DIRs), Expertise, Life Insurance, M Intelligence, Ultra-Affluent Life Insurance, Universal Life (UL), Whole Life (WL)

Over the past 25+ years, universal life (UL) crediting rates and whole life (WL) dividend interest rates (DIR) have been declining due to lower insurance company portfolio yields in a declining interest rate environment. With the rise in interest rates (e.g., treasuries and corporate bonds) at the end of 2016, many are wondering if the end of declining UL crediting rates and WL DIRs is near.

The latest M Intelligence piece—The Impact of Recent Interest Rate Increases on Universal Life Crediting Rates and Whole Life Dividend Interest Rates—is designed to offer insight on this question by examining the fundamentals that drive UL crediting rate and WL DIR movements and establish expectations going forward.

Watch Dennis McMahan, CLU® explain what this recent increase may mean for fixed interest life insurance policies.

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