Which type of life insurance provides lifetime protection and accrues cash value?

Whole life insurance is designed to provide lifetime protection against death while also accumulating cash value over time. This cash value component grows at a guaranteed rate set by the insurance company, and policyholders can borrow against it or withdraw it as needed, providing a level of flexibility in accessing funds during their lifetime.

Essentially, whole life insurance combines a death benefit with a savings element, making it distinct from other types of life insurance. Term life insurance, for instance, only provides death coverage for a specific term and does not accumulate cash value. Universal life insurance also offers a flexible premium structure and death benefit, but its cash value fluctuates based on interest rates and market performance, differing from the guaranteed growth of whole life. Variable universal life insurance incorporates investment options for cash value but does not guarantee the returns as it depends on the performance of those investments. Thus, whole life insurance is characterized by its lifetime coverage and predictable cash value accumulation.