What is the maximum fixed interest rate charged by insurers for policy loans in Connecticut?

In Connecticut, the maximum fixed interest rate that insurers can charge for policy loans is set at 8%. This rule is designed to protect policyholders from excessively high interest rates while ensuring that insurers can maintain a sustainable lending operation. By capping the interest rate at this level, the state aims to balance the interests of both the insurance company and the policyholder, creating a fair environment for borrowing against life insurance policies. Knowing this rate is crucial for individuals considering taking a loan against their insurance policy, as it directly affects the cost of borrowing and the total repayment amount owed.