What does the insurance company's pricing interest rate of 3.5% mean?

It means to increase. In each policy year, the insured amount of whole life insurance will increase with compound interest of 3.5%. 4.025% represents annuity insurance and 3.5% represents life extension. Simply put, it means the same as deposit interest rate and national debt. The insurance company's pricing interest rate of 3.5% generally appears in whole life insurance's premiums, which means that whole life insurance's premiums will increase with compound interest at the rate of 3.5% every policy year.