Which of the following refers to the value that accumulates in a whole life insurance policy over time?

The cash value represents the amount of money that accumulates in a whole life insurance policy as the policyholder pays premiums over time. This feature is unique to whole life policies, which combine a death benefit with a savings component. As premiums are paid, a portion of that payment contributes to the cash value, which grows at a predetermined rate set by the insurance company.

This cash value can be accessed by the policyholder during their lifetime, typically through loans or withdrawals. It serves as a savings element, offering financial flexibility. Over the life of the policy, the cash value continues to grow and can be considered an asset that policyholders can use for financial needs, such as emergencies or retirement funding.

The face amount refers to the initial amount of coverage that will be paid out upon the death of the insured, not the accumulated value. The death benefit is the sum paid to beneficiaries upon the death of the insured, which is also distinct from the accumulated savings. The premium is the amount paid periodically to keep the policy in force, rather than being a value that accumulates over time.