Fixed Rate Strategy Sample Clauses
The Fixed Rate Strategy clause establishes that a predetermined, unchanging interest rate will apply to a financial agreement or loan. In practice, this means that the borrower will pay the same interest rate throughout the entire term, regardless of fluctuations in market rates or economic conditions. This clause provides predictability and stability for both parties by eliminating the risk of unexpected changes in payment amounts due to interest rate volatility.
Fixed Rate Strategy. Fixed Rate Strategy Interest Rates Fixed Rate Strategy Accumulation Value
Fixed Rate Strategy is the Strategy that applies the declared Fixed Rate Strategy Interest Rate to the applicable Premium or Reallocation of Accumulation Value. See Section 5.2 for additional details. Fixed Rate Strategy Interest Rate is the declared annual interest rate applicable to the Fixed Rate Strategy. The Fixed Rate Strategy Interest Rate is declared annually and in advance and is guaranteed for one year unless the Premium or Reallocation of Accumulation Value is reallocated to another strategy. The Fixed Rate Strategy Interest Rate shall be declared in our discretion and it will be at least equal to the Fixed Rate Strategy Minimum Guaranteed Interest Rate shown on the Contract Schedule. Hospital or Nursing Home means a hospital or a skilled care or intermediate care nursing facility, operating as such according to applicable law and at which medical treatment is available on a daily basis. This does not include a rest home or other facility whose primary purpose is to provide accommodations, board, or personal care services to individuals who do not need medical or nursing care. Index means an index applicable to the Point-to-Point Cap Index Strategy. See Section 5.3 for additional details. Index Cap means the maximum Index Credit that may be applied at the end of each Indexing Period. It is declared annually in advance and is guaranteed for one year unless that Premium or Reallocation is reallocated to another Strategy or Index. Index Credit means the rate credited to each Premium and Reallocation of Accumulation Value allocated to the Point-to-Point Cap Index Strategy and is based on the performance of the applicable Index as measured over the Indexing Period.
Fixed Rate Strategy. Value of the Fixed Rate Strategy
(1) On each Allocation Date, the value of each Premium or reallocation of Indexed Segment value in the Fixed Rate Strategy equals the amount of Premium or reallocated Indexed Segment value, less any premium tax, if applicable; and
(2) On each day thereafter, the value associated with each Premium or reallocation of Indexed Segment value held in the Fixed Rate Strategy equals:
(a) The value of the Premium or reallocation of Indexed Segment value on the last Allocation Anniversary; less
(b) Any reallocations out of the Fixed Rate Strategy since the last Allocation Anniversary; less
(c) Adjustments for any Withdrawals from the Fixed Rate Strategy since the last Allocation Anniversary; plus
(d) Interest credited daily. For the purpose of this calculation, during the first Allocation Year, the Allocation Date shall be deemed to be “the last Allocation Anniversary.” Interest will be compounded daily in a manner to yield the declared annual Fixed Interest Rate. The declared annual Fixed Interest Rate will be at least equal to the Minimum Guaranteed Interest Rate shown in the Contract Schedule. The Fixed Interest Rate applicable to each Premium or reallocation of value will be declared on the Allocation Date and on each subsequent Allocation Anniversary and will not be changed more often than once in any twelve month period. The initial interest rate applicable to the Initial Premium is shown in the Contract Schedule. The portion of any Additional Premium or reallocations of Indexed Segment value to the Fixed Rate Strategy will be credited with interest at a rate declared by us. In case of a Withdrawal or Surrender, interest will be credited on the portion of the Fixed Rate Strategy’s value withdrawn or surrendered up to and including the date the transaction is processed. The value of this Strategy at any date within an Allocation Year will be determined by us with allowance for the time elapsed in the Allocation Year. No interest will be credited on any premium tax after we deduct it. The Fixed Rate Strategy Minimum Guaranteed Value The Fixed Rate Strategy Minimum Guaranteed Value equals: (1) 87.5% of the portion of the Premium allocated to the Fixed Rate Strategy, less premium taxes, if applicable; adjusted for