Peter's policy invests 80% to 90% in traditional fixed income securities and the rest in contracts tied to a stock index. What type of policy is this?

The policy described is classified as an equity index whole life insurance policy. This type of policy combines elements of traditional whole life insurance with investment components tied to a specific stock market index. By allocating 80% to 90% of the investments in traditional fixed income securities, it seeks to provide a stable and conservative growth framework, while the remaining portion linked to stock indexes allows for potential growth that aligns with stock market performance.

The combination of these two investment strategies helps policyholders achieve a balance of security with fixed income while also having the opportunity to benefit from market gains without exposing them fully to the risks typically associated with equities. This structure is specifically designed to provide both life insurance coverage and a cash value component that has growth potential linked to the equity markets.

In contrast, other types of policies, such as modified endowment contracts and current assumptive whole life, do not typically involve the same investment structure tied to equities or indexes, and credit life insurance is a different product designed to pay off debt in the event of the policyholder's death.