The investments in the Guaranteed Interest Contract are selected for their ability to provide safety of principal and guaranteed rates of return. Deposits under the contract are primarily invested in high-grade corporate and government bonds and commercial mortgages. Investments match the duration of the maturities under contract.
The Guaranteed Interest Contract consists of two components:
- Maturity Accounts with investment terms of 3 to 9 years
- Activity Account a short-term interest account
Maturity Accounts
Maturity Account guaranteed interest rates are declared at the beginning of each month for investment terms of three to nine years. Interest rates are guaranteed for deposits up to $250,000 each month. The investment term is selected by the plan sponsors and can apply to each deposit or be determined at the beginning of each contract year and apply to all deposits received during the year.
Activity Account*
The Activity Account is a short-term interest account used to pay benefits or to hold a deposit until the deposit is transferred to another account. If payment of benefits results in a negative balance in the account, interest is charged at a short-term rate declared at the beginning of each month.
* The Activity Account is not available as an investment options unless agreed upon by United of Omaha Life Insurance Company.
