What are adjustable rates for life policy loans in Florida based on?

Adjustable rates for life policy loans in Florida are primarily based on the Moody's Corporate Bond Index. This index acts as a benchmark that reflects the average yield on corporate bonds rated by Moody's Investors Service. Insurance companies utilize this index to determine the interest rates applied to policy loans, allowing them to offer competitive and market-responsive rates for borrowers.

Using the Moody's Corporate Bond Index helps ensure that the rates associated with loans on life insurance policies align with prevailing market conditions and provide borrowers with an equitable cost of borrowing. This method ensures a degree of predictability and fairness for policyholders.

The Federal Reserve Rate, while influential in overall economic conditions, does not specifically dictate adjustable rates for life insurance policy loans. Similarly, the Life Insurance Industry Index and the Dow Jones Industrial Average focus on different aspects of financial markets, which do not directly correlate with the interest rates charged on loans against life insurance policies in Florida.