Which type of life insurance policy contains a guaranteed rate?

The type of life insurance policy that contains a guaranteed rate is whole life insurance. Whole life policies are designed to provide coverage for the insured's entire lifetime, as long as premiums are paid, and they include a savings component known as cash value, which accumulates at a guaranteed interest rate set by the insurer. This guaranteed rate ensures that the cash value grows over time regardless of market fluctuations, providing the policyholder with a stable and predictable growth element.

In contrast, universal life insurance offers flexible premiums and death benefits but does not guarantee a specific rate of return on the cash value, as it can vary based on current interest rates. Term life insurance provides coverage for a specified period and does not contain a cash value component; therefore, it does not offer a guaranteed rate on anything since it lacks a savings element. Group life insurance typically offers term life coverage to a group, such as employees of a company, and also does not include a guaranteed rate structure.

The guaranteed component of whole life insurance is key in ensuring policyholders have a secure form of life insurance that builds cash value steadily over time.