What does Assumed Investment Return mean? Read on to discover the definition & meaning of the term Assumed Investment Return - to help you better understand the language used in insurance policies.
Assumed Investment Return
An assumed investment return is the amount of return that is needed on investments to keep variable annuity payments level. Variable annuities are often used in life insurance. They are an alternative to fixed annuities, which provide a fixed rate and, unlike variable annuities, are not subject to the performance of stocks, bonds, mutual funds, or other investments.
We hope the you have a better understanding of the meaning of Assumed Investment Return.