Hi,
Newbie trying to grasp how ULSG works (and I am trying to piece together how AG38 affects this but doing that in other threads).
What I think I understand so far is:
The [secondary] guarantee is basically carrier saying: "don't worry, if interest rate averages below ~*2%, we will guarantee that if you put in the amount that with ~*2%+ it would be enough premiums we will make sure it stays in force.
...So basically in addition to a regular UL policy you are buying insurance on the interest rate.
Is that right?
p.s. And I guess with AG38 - the regulators are saying that carriers are being to risky with that?
Newbie trying to grasp how ULSG works (and I am trying to piece together how AG38 affects this but doing that in other threads).
What I think I understand so far is:
The [secondary] guarantee is basically carrier saying: "don't worry, if interest rate averages below ~*2%, we will guarantee that if you put in the amount that with ~*2%+ it would be enough premiums we will make sure it stays in force.
...So basically in addition to a regular UL policy you are buying insurance on the interest rate.
Is that right?
p.s. And I guess with AG38 - the regulators are saying that carriers are being to risky with that?