Which policy type is described by a cash value accumulation with the potential for increasing death benefit, as seen in a policy where the cash value grows over time and the face amount increases?

• A. Term Life
• B. Whole Life
• C. Variable Life
• D. Universal Life

Answer: (D)

This describes universal life, which blends cash value growth with an adjustable death benefit. In universal life, premiums are flexible and part of what you pay goes into a cash value that earns interest. As the cash value grows, the policy can increase the death benefit, so the face amount rises over time. Term life has no cash value and typically a fixed, level death benefit. Whole life provides a guaranteed cash value and usually a level death benefit. Variable life also has cash value tied to investments, with potential changes in the death benefit, but the scenario emphasized steady cash value growth and a rising face amount, which aligns with universal life’s increasing death benefit option.