Which policy's accumulation value Increases according to market rates

Whole life insurance policies provide a guaranteed cash value growth over time, but the increase is not tied to market rates. The growth is typically at a fixed rate determined by the insurance company, offering stability and predictability in the cash value accumulation.

Term life insurance policies do not have a cash value component that accumulates over time. These policies provide coverage for a specific term, typically without any investment or savings feature. The premiums paid for term life insurance solely go towards providing a death benefit during the policy term.

Graded premium whole life insurance policies may have increasing premiums over time, but the cash value accumulation is not directly tied to market rates. The cash value growth in these policies follows a predetermined schedule set by the insurance company, regardless of market performance.