Which type of life insurance policy is typically permanent and provides a death benefit as well as cash value accumulation?

The selected answer is accurate because whole life insurance is designed to be a permanent life insurance policy that provides both a death benefit and a cash value component. Whole life insurance remains in effect for the insured's entire lifetime, as long as premiums are paid, creating a guaranteed death benefit for beneficiaries. Additionally, this policy accumulates cash value over time, which can be borrowed against or withdrawn by the policyholder.

The cash value grows at a guaranteed rate, and the policyholder may also receive dividends dependent on the insurance company’s performance. This feature of cash value accumulation sets whole life insurance apart from term life insurance, which only offers a death benefit without cash value, and from universal and variable life insurance policies, which have different structures and may allow for variable growth potential due to investments, but still categorize under permanent policies.