Cash-value policies are good for people who must be forced to save and for those who plan to keep the policy for a(n) period of time

Cash-value policies, often associated with whole life insurance, serve as both an insurance product and a savings vehicle. They are particularly beneficial for two types of individuals:

1. Individuals who struggle to save money: For those who find it difficult to set aside savings consistently, cash-value policies provide a disciplined approach to saving. The premiums paid contribute not only to life insurance coverage but also accumulate a cash value over time, which can be accessed later.

2. Individuals who plan to keep the policy for a long duration: Cash-value policies are designed to build value over time. For the policyholder who intends to retain the policy for a substantial period—usually decades—this type of policy can yield significant benefits. The cash value grows based on a guaranteed interest rate plus any dividends, which can be advantageous in the long run.

Overall, cash-value policies appeal to long-term planners and those who need structured saving strategies, making them valuable financial instruments.