What is a key feature of single premium whole life insurance?

A key feature of single premium whole life insurance is that it generates immediate cash value with a one-time payment. This type of policy is designed so that the insured makes a single lump-sum payment at the outset, which then fully funds the policy’s death benefit and its cash value component. Because of this one-time payment, the policy builds cash value right away, unlike other types of whole life insurance that require regular premium payments over time. This immediate cash value is a significant advantage for policyholders who wish to have liquidity available quickly while still maintaining the long-term benefits of a whole life insurance policy.

The design of the policy also means that it isn't reliant on ongoing premium payments, which differentiates it from traditional whole life insurance policies. Additionally, while cash value does accumulate over time in most whole life policies, the single premium structure accelerates this process. Lastly, coverage extends beyond age 65 and continues for the life of the insured as long as the policy is in force, which is another key distinction from certain term insurance products that may limit coverage duration.