A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years. Which statement by the producer would be correct?

The statement regarding 20-Pay Life accumulating cash value faster than straight life is accurate because 20-Pay Life is designed to provide a more rapid accumulation of cash value in the early years of the policy. This type of Whole Life policy has premiums paid over a fixed period of 20 years, after which the policy is considered paid up, achieving the benefit of full cash value much sooner compared to a standard Whole Life policy, which typically spreads the premium payments over the insured's lifetime.

This structure allows policyholders to accumulate cash value more quickly, making it appealing for those looking to leverage the policy's cash value for loans or other financial needs in the earlier years. Other options do not provide this accelerated cash value growth, which is particularly beneficial for someone like the potential client seeking a quicker return on their investment in a life insurance policy.