How high can the interest rates go and still make a positive return?
Since interest rates on both the loan and the crediting products are variable, they historically have tended to fluctuate along similar tracks, avoiding a negative return due to rate fluctuation. While, in the short term, there will be periods of positive and negative variance, the LCP Program is a simple versus compound interest strategy. In reality, in higher interest environments affecting both the loan and the policy, it is better for the client due to the compounding effect.
