Which type of life insurance provides coverage for the insured's entire life and has a cash value?

Whole life insurance is designed to provide coverage for the insured's entire life, regardless of when they pass away, as long as premiums are paid. One of its defining features is the cash value component, which accumulates over time. A portion of each premium payment contributes to this cash value, allowing the policyholder to borrow against it or withdraw funds. This dual nature of coverage and savings distinguishes whole life insurance from term life insurance, which only provides protection for a specified period without any cash value.

Universal life insurance and variable life insurance also provide lifetime coverage but come with more flexibility regarding premium payments and investment options. However, while they have cash value components, their structures are more complex compared to the straightforward nature of whole life insurance, which guarantees both death benefit and cash value accumulation. This clarity in benefits is why whole life insurance is the correct answer to the question.