What type of insurance policy is typically characterized by guaranteed premiums and cash value accumulation?

The type of insurance policy that is characterized by guaranteed premiums and cash value accumulation is the permanent plan. This type of policy is designed to provide lifelong coverage, as long as the premiums continue to be paid.

Permanent plans, such as whole life insurance, not only offer a death benefit but also accumulate cash value over time. This cash value grows on a tax-deferred basis and can be accessed by the policyholder through loans or withdrawals. The guarantee of premiums means that the amount paid will remain consistent over the life of the policy, providing long-term financial stability for policyholders.

In contrast, temporary plans are usually term policies that cover a specific period and do not build cash value; they only offer death benefits. Renewable term policies allow for renewal but do not accumulate cash value either. Non-participating plans typically do not offer shared dividends and may not have the warranty of growth in cash values that permanent plans do.

Thus, the characteristics of guaranteed premiums and cash value accumulation clearly align with what defines a permanent plan.