Which type of insurance policy focuses on cash accumulation?

The focus of a whole life insurance policy on cash accumulation is a fundamental characteristic that sets it apart from other types of life insurance. Whole life policies provide both a death benefit and a cash value component, which grows over time as premiums are paid. This cash accumulation occurs on a tax-deferred basis, meaning policyholders won't pay taxes on the growth until they withdraw funds, making it a potential long-term savings vehicle.

In contrast, increasing term policies do not accumulate cash value; they simply provide a death benefit that increases over time in accordance with specified terms. Term life is purely designed to offer coverage for a specified period and does not build any cash value at all. Credit life insurance is intended to pay off a specific debt upon the insured’s death and likewise does not have a cash accumulation feature. Therefore, among the options given, whole life insurance is distinctly focused on cash accumulation as part of its overall structure.