Fixed-Rate Universal Life Policy

Fixed-Rate Universal Life Policy refers to a particular feature within the policy that offers a guaranteed, fixed interest rate on a portion of the policyholder's cash value.

Unlike the indexed account, which earns interest based on the performance of a stock market index, the fixed account provides a stable and predictable growth rate. This can be appealing to policyholders who seek a degree of safety and consistency in their life insurance policy's cash value accumulation.

By allocating funds to the fixed account within an IUL policy, the policyholder can balance their portfolio to mitigate market risks while still benefiting from the flexibility and potential for higher returns associated with the indexed account.