Final answer:
A single premium cash value policy is a policy that is paid up after only one payment. It provides a death benefit and also has a cash value component that accumulates over time.
Step-by-step explanation:
A single premium cash value policy can be described as a policy that is paid up after only one payment. A single premium cash value policy is a policy that is paid up after only one payment. It provides a death benefit and also has a cash value component that accumulates over time.
This means that the policyholder makes a single lump sum payment and then the policy is considered fully paid. The policy not only provides a death benefit, but also has a cash value component. The cash value accumulates over time and can be used by the policyholder during their lifetime, either through policy loans or withdrawals.