What type of life insurance covers the insured's whole life and accumulates a cash value?

Whole life insurance is designed to provide coverage for the entire lifetime of the insured. One of the defining features of this type of insurance is that it accumulates a cash value over time. This cash value grows at a guaranteed rate set by the insurance company and can be accessed by the policyholder through loans, withdrawals, or by surrendering the policy.

Additionally, whole life insurance provides a death benefit to beneficiaries upon the death of the insured, ensuring financial security for loved ones. The blending of lifelong coverage with the savings component makes whole life insurance a popular option for those looking to combine insurance protection and a way to build cash value for future use. While other insurance types, like universal life, also offer cash value accumulation, whole life guarantees a fixed premium and cash value growth, distinguishing it significantly from other options like term life insurance, which does not build cash value at all.