Life Insurance Policies
How is interest credited to the cash value of a fixed indexed life policy?
Answer and explanation
Answer: B. Fixed indexed life credits interest according to a formula tied to an external index such as a broad equity index, without the value being invested in the market itself. The owner does not choose the rate, and the crediting is not the general account rate.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, fixed indexed life
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