What is aul stable value account

The AUL Stable Value Account is an interest-earning investment option, backed by AUL's general account assets. An interest rate is declared prior to the beginning of a calendar year and is guaranteed for that year until the new rate is set for the next year.

What is a stable value account?

A stable value fund is a portfolio of bonds that are insured to protect the investor against a decline in yield or a loss of capital. The owner of a stable value fund will continue to receive the agreed-upon interest payments regardless of the state of the economy.

Can you withdraw from stable value fund?

Participant withdrawals and transfers are freely permitted daily according to plan provisions. Stable value funds from The Standard provide participants with full book value liquidity for benefit payments (death, disability or retirement) and transfers to other investment options.

Are stable value funds a good investment?

Stable value funds are an excellent choice for conservative investors and those with relatively short time horizons, such as workers nearing retirement. These funds will provide income with minimal risk and can serve to stabilize the rest of the investor's portfolio to some extent.

Has a stable value fund ever lost money?

However, interest rate risk is arguably more likely than default risk. So, exchanging interest rate risk for insurance company solvency risk might be worth the additional cost of insurance. However, solvency risk does sometimes show up, with investors in a stable value fund losing money.