The three primary types of cash-value life insurance
are:
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- A whole life insurance policy, which lets the cash value of the policy
accumulate depending on the return of the life insurance companyÂ’s investments
in stocks, bonds, and other financial instruments.
- A variable life policy, which lets the policyholder choose the investments
for the life insurance policy, selecting from a variety of mutual fund or other
investment options.
- A universal life policy, which lets investors choose their investments among
money market and Treasury securities; universal life policies were widely
popular during the 1980s, when interest rates were high, but are less popular
today.
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