What is the maximum interest rate that can be charged on a new policy in Ohio?

The maximum interest rate that can be charged on a new life insurance policy in Ohio is established based on state regulations, which are designed to protect consumers while allowing insurers to manage their finances effectively. In Ohio, the law permits a maximum fixed annual interest rate of 8% on life insurance policies. This ensures that policyholders are not subjected to excessively high interest charges that could impact their long-term financial obligations associated with the policy. The rate strikes a balance between providing insurers with a reasonable return while ensuring consumers are safeguarded against extreme financial practices. Understanding this regulation helps policyholders make informed decisions regarding life insurance products that adhere to state guidelines and standards.