The interest rate an insurer uses as one input to determine policy dividends on participating whole life policies. Distinct from the participating...
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Also known as: DSIR
The interest rate an insurer uses as one input to determine policy dividends on participating whole life policies. Distinct from the participating account's actual rate of return: the DSIR smooths investment performance over time (gains and losses amortized over roughly 15 to 20 years, unrealized bond movements typically not recognized), so changes lag the market. This smoothing produces dividend scales with substantially lower volatility than underlying markets. Major Canadian insurers publish DSIRs annually; typical range has been 5.5% to 6.5% in recent years.
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Independent advisor since 2008, focused on corporate investing, tax-efficient wealth strategies, and dynasty planning for incorporated business owners in Québec and Ontario. Mutual funds distributed through WhiteHaven Securities Inc.; insurance through iAssure Inc.
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