One of the most misunderstood concepts of life insurance policies is the so-called 4% guaranteed rate of interest.
As a result of it a lot of times people get a life insurance policy but don’t see what they are told – the guaranteed 4% rate of return.
The 4% isn’t a guaranteed interest rate of return, but rather a discount rate.
![The “Guaranteed 4% Interest Rate” on a Whole Life Insurance Policy](https://tier1capital.com/wp-content/uploads/2022/04/4-760x428.png)