What is the maximum fixed interest rate allowed for life policy loans in Florida?

In Florida, the maximum fixed interest rate that can be charged on loans taken against a life insurance policy is set at 10%. This is established by state law to provide a standardized borrowing rate for policyholders, ensuring that individuals who take loans against their life insurance have a clear understanding of the costs associated with the loan. This regulation helps protect consumers by preventing excessively high interest rates that could lead to financial distress or discourage individuals from using their policy's cash value.

The 10% rate is typically considered reasonable and allows insurance companies to cover their costs while also offering policyholders access to funds without the need for credit checks or additional fees. This balance is important in maintaining the fairness and sustainability of the insurance market in Florida.