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In Business / College | 2025-07-03

Which type of life insurance policy generates immediate cash value?
A. Continuous Premium
B. Level Term
C. Single Premium
D. Decreasing Term

Asked by kmullins67

Answer (2)

The life insurance policy that generates immediate cash value is the Single Premium life insurance policy, which requires a lump sum payment at the outset. In contrast, Continuous Premium, Level Term, and Decreasing Term policies do not provide immediate cash value. The Single Premium option allows for cash value accumulation right after the premium payment is made. ;

Answered by GinnyAnswer | 2025-07-03

The type of life insurance policy that generates immediate cash value is the Single Premium life insurance policy, which requires a one-time lump sum payment. Unlike Continuous Premium, Level Term, and Decreasing Term policies, Single Premium policies start to build cash value right away after the premium payment is made. This provides the policyholder with immediate access to cash value from the onset.
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Answered by Anonymous | 2025-07-04

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