Safe Investment Rule Law and Legal Definition

Safe investment rule is a rule applied in the computation of the present worth of a decedent's expected future earnings. Under the safe investment rule, the present value of the decedent's expected future earnings, is the rate of interest which, in the jury's considered judgment, is reasonable, just, and right under the circumstances, taking into consideration the evidence presented, knowledge of the prevailing interest rates within the limits prescribed by law in the area, and what rate of interest could fairly be expected from safe investments as made by a person of ordinary prudence, but without particular financial experience or skill.