Assumed interest rate


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Assumed interest rate

Rate of interest used by an insurance company to calculate the payout on an annuity contract.

Assumed Interest Rate

In annuities, a component of how monthly payments to the annuitant are determined. It is the minimum interest rate that the annuity may accrue while the annuitant makes payments on it; the annuity may perform better than the assumed interest rate depending on how it is invested, but the assumed interest rate serves as a bottom for how much the annuitant will receive when he/she begins to draw payments.
References in periodicals archive ?
72 percent, compared to an assumed interest rate on the unfunded pension liability of 8.
Best believes that the company's current investment yield is well above the assumed interest rate.
The substitute LOC covers the principal amount of bonds, $20,000,000 and interest representing 55 days of interest at a maximum assumed interest rate of 12% per annum based on a 360-day year.
The substitute LOC covers the principal amount of bonds currently outstanding at $1,650,000 and interest coverage in the amount of $23,869, representing 44 days of interest at a maximum assumed interest rate of 12% per annum, based on a 365-day year.
The substitute LOC covers the principal amount outstanding in the amount of $44,630,000 and interest coverage in the amount of $929,792 (50 days' interest at a maximum assumed interest rate of 15% per annum based on a 360-day year).