Can a Variable Life Insurance policy include a guaranteed interest account?

A Variable Life Insurance policy can include a guaranteed interest account, which acts as a safety net for the cash value. This feature provides policyholders with a level of security by ensuring that a portion of their investment can earn a guaranteed rate of interest, regardless of the performance of the underlying investments chosen by the policyholder. This guarantees that the cash value will not decrease, offering a level of protection against market volatility, which is particularly valuable in fluctuating economic conditions.

The presence of a guaranteed interest account allows policyholders to maintain some growth in their cash value while still enabling them to invest in riskier assets if they choose to do so. This dual nature of variable policies attracts individuals looking for both growth potential and a level of security for their investments.