Which type of life insurance policy is known for having cash accumulation?

The correct choice is straight whole life insurance because it is specifically designed to build cash value over time. This type of policy ensures that a portion of the premium payments accumulates as cash value, which grows on a tax-deferred basis. Policyholders can access this cash value through loans or withdrawals, which can be beneficial for emergencies or as a source of funds for other expenses.

Straight whole life insurance provides lifelong coverage as long as premiums are paid, and it typically features guaranteed death benefits as well as a predictable growth of cash value. This cash accumulation is one of the primary advantages that distinguishes straight whole life from policies that do not offer cash value features.

In contrast, term life insurance does not accumulate cash value; it provides coverage only for a specified period and is strictly designed to pay a death benefit if the insured passes away within that term. Universal life insurance does offer cash accumulation, but it is more flexible in terms of premium payments and death benefits compared to straight whole life. Variable life insurance allows for investments in various instruments that can impact cash value and death benefit, but the cash accumulation is not as guaranteed as in straight whole life policies. Therefore, straight whole life stands out as the straightforward choice for assured cash accumulation in life insurance policies.