I recently learned of indexed universal life insurance. One of the features of this type of investment is that a portion of the funds are used for puts, so the investment rarely (never?) loses money from market fluctuations.
AFAIK, the tradeoff for this is that there is a cap on the other end, so the investment won't take advantage of a spike which is greater than 10% or 12%. There's a few other gotchas as well. But this is not my question.
My question is, are there other investment types that take advantage of this sort of "rainy day" structure, where a portion is used for puts (or something else?) that ensures little or no loss due to market fluctuation?