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

In Florida, the adjustable rates for life policy loans are based on the Moody's corporate bond index. This index provides a benchmark that reflects the general level of interest rates in the corporate bond market, which insurers often use to set the rates on loans taken against life insurance policies. By tying the adjustable rate to an index that closely represents market conditions, policyholders can expect rates that are aligned with current economic trends rather than arbitrary or unrelated statististical measures. Thus, understanding the context of the Moody's corporate bond index is crucial for both insurers and borrowers in managing their expectations regarding loan terms associated with life insurance policies.