Final answer:
The lottery winner purchased a single-premium whole life insurance policy, a type of cash-value life insurance paid in one lump sum that also accumulates a cash value account.
Step-by-step explanation:
The lottery winner purchased a single-premium whole life insurance policy, which allows the policyholder to pay the entire premium in one lump sum. This type of policy is a form of cash-value life insurance that not only provides a death benefit but also accumulates cash value over time.
The accumulated cash can then be used as an account for the policyholder's use. These policies are often selected by individuals who receive a windfall of money and wish to manage their estate and provide for their beneficiaries while also enjoying the potential tax advantages of life insurance.