What type of policy should an applicant choose if they want a policy that has a cash value element?

A permanent policy is the correct choice when an applicant is looking for a life insurance option that includes a cash value element. Permanent life insurance, such as whole life or universal life, not only provides a death benefit to the beneficiaries but also accumulates cash value over time. This cash value grows at a guaranteed rate, and policyholders can access it through loans or withdrawals during their lifetime.

In contrast, term policies provide coverage for a specific period without a cash value component; once the term expires, the policy simply ends without any payout or accumulation of value. Stock and investment options do not qualify as life insurance policies and are unrelated to the nature of life insurance since they pertain to different financial instruments.

Thus, for individuals seeking both life insurance coverage and the opportunity to build cash value, permanent policies are the appropriate choice.