Fixed Indexed universal life insurance, just like all other forms of fixed account cash value life insurance products, is a stock market neutral product (i.e., it does not decline in correlation with the stock market the way several other savings vehicles do). This makes it a wonderful complement to any portfolio to help diversify risk or a great refuge for those who are spooked by market volatility and want to minimize their exposure. But, it also has high potential to deliver very competitive growth to policyholders since it gains substantially from movement in the stock market. Whether that movement be a continued bull market or a recovering market following a correction, positive gains over the time period tracked by the indexed account can net huge growth to policyholder cash values.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.