Guaranteed insurance accounts are stable value funds that are offered to defined contribution plans such as 401(k), 401(a), 457, 403(b) and some 529 tuition assistance plans, generally managed entirely and guaranteed directly by a single insurance company.

Consider asset ownership, single guarantors, disclosure requirements, fees/spread, and exit terms.

In addition to providing an attractive solution to plans and participants seeking stability, liquidity, and yield, guaranteed insurance accounts provide the following benefits:

By declaring a rate that can never fall below the guaranteed minimum interest rate in advance, the insurance company assumes certain risks.

Transferring risk from policyholders to the insurance company is at the very heart of what insurance companies do every day.

Guaranteed insurance accounts can be structured in two ways: general accounts or separate accounts.

Aside from the fact that any claims related to guaranteed insurance accounts are pari-passu with policyholders and ahead of general creditors, insurance companies are highly regulated with rigorous risk management and oversight processes.