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For example, I'm looking at the Nationwide Indexed Universal Life Accumulator II 2020 life insurance with a Long-term Care Rider. Each month, the client pays some premium, say 50 USD. From the amount, some percentage of the premium is taken away as a charge, say 6%. This leaves 50 USD * (1 - 0.06) = 47 USD, which is referred to as the Net Premium (net of charge).

The Net Premium is invested following some Net Premium Allocation plan. E.g., 50% in the "One-Year S&P 500® Point-to-Point" and 50% in the "One-Year Multi-Index Monthly Average". Unless the yearly Minimum Required Fixed Interest Strategy Allocation (MRFISA) has not been reached yet, in which case the money is invested toward some Fixed Interest Strategy.

Before the money gets invested according to the Net Premium Allocation plan, a Fixed Interest Strategy Amount is withheld (e.g., 20 USD). The insurance mentions that this amount will remain in the Fixed Interest Strategy. However, when looking at the monthly statements, the amount of money in the Fixed Interest Strategy does not increase. So what's the "Fixed Interest Strategy Amount Withheld" in a life insurance? Where does Fixed Interest Strategy Amount that is withheld go?

Example of monthly statement showing the Fixed Interest Strategy Amount:

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Example of showing the money flow: premium (50 USD) ---> net premium of 47 USD after the 3 USD charge is deduced ---> investment (I added the red amounts):

enter image description here

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    So that's a Whole Life policy, which is basically a term policy bundled with an investment vehicle. Usually not a very good choice unless you need help enforcing reliable savings, since the results tend to be inferior to handling the two aspects of your finances separately. As far as the definition of that term: I suspect you need to look in the insurance company's literature to find out what their"strategy" is.
    – keshlam
    Feb 20 at 17:34

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Insurance terms are defined in your policy. That includes the definition of various strategies used and investments allowed under the policy. You should read your individual policy, as these may differ across different policies of the same insurer. You may want to discuss this with your insurance agent.

If the insurance company is doing something contrary to what is stated in the policy (e.g.: they said they'd dedicate a certain percentage of your contribution to a certain investment - and are not doing it) - you should immediately take it up with your agent, and if needed your State insurance regulators.

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The insurance company may levy charges on the Fixed Interest money pool. This makes the charges less visible to the insuree, and this explains why the 20 USD of Fixed Interest Strategy Amount withheld isn't reflected on the next monthly statement. Interesting, at Nationwide, most monthly charges are not explicitly mentioned on the monthly statements, but they appear on the yearly statement:

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The flowchart by Nationwide is incorrect: they'll still take charges on the 47 USD (by levying charges on the 20 USD that were supposedly allocated to the Fixed Interest Strategy).

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