What feature is unique to Single Premium Whole Life policies?

Single Premium Whole Life policies are unique in that they generate immediate cash value. This is because the policyholder makes a lump sum payment at the start of the policy, which fully funds the insurance coverage upfront. As a result, from the moment the policy is issued, it has accrued cash value, allowing the policyholder access to that value if needed for loans or withdrawals. This immediate cash value is a distinctive feature not typically found in other types of life insurance policies, where payments are usually made over time and cash value builds gradually.

In contrast, multiple payments, limited coverage duration, and market-linked features do not define Single Premium Whole Life policies, reinforcing the uniqueness of their immediate cash value characteristic.