Which life insurance policy typically provides both a death benefit and cash value accumulation?

Whole life insurance is designed to provide both a death benefit and a cash value accumulation component. This type of policy ensures that the insured’s beneficiaries receive a predetermined payout upon the policyholder's death, while also allowing the policyholder to accumulate a cash value over the life of the policy. The cash value grows at a guaranteed rate set by the insurance company and can be accessed by the policyholder through loans or withdrawals.

Additionally, one key feature of whole life insurance is that the premiums are generally fixed throughout the life of the policy. This aspect provides a sense of stability for policyholders, who can plan their finances without worrying about fluctuating premiums.

In contrast, term life insurance typically does not have a cash value component; it is purely a death benefit plan covering the insured for a specified period. Universal life offers more flexibility in premium payments and benefit amounts but varies in how the cash value grows. Variable life insurance allows the policyholder to invest the cash value, which can lead to variable returns based on market performance, making it riskier compared to whole life.