Which policy is generally cheaper that also includes cash accumulation?

The correct answer is Straight Whole Life, which is generally cheaper compared to other permanent life insurance options while still allowing for cash accumulation. Straight Whole Life insurance provides a guaranteed death benefit and includes a cash value component that grows over time at a guaranteed rate. This means that policyholders can build savings within their policy, which can be borrowed against or withdrawn under certain circumstances.

Universal Life, while offering flexibility in premium payments and the potential for cash accumulation, typically has higher costs associated with the flexible nature of the policy and the way interest is credited to the cash value. Term Life does not accumulate cash value at all since it is designed to provide coverage for a specific term without any savings features. Variable Life insurance often comes with investment components that can sometimes make it more expensive due to additional risks involved in the cash value growth linked to market performance.

Straight Whole Life's guarantees and straightforward structure make it an attractive option for those looking for both affordable premiums and a cash accumulation feature.