ASSUMED INTEREST RATE - AIR
The growth rate, or rate of interest, chosen by the insurance company. The assumed interest rate is given to know the value of an annuity contract and thus the periodic income payment that can be given to the annuitant. Amalgamated with other factors such as type of annuity coverage preferred, spousal coverage options, and the annuitant's age upon annuitization, the AIR decides the monthly payment which the annuitant will receive.
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