What type of insurance coverage guarantees a death benefit and cash accumulation?

Whole life insurance provides both a guaranteed death benefit and a cash accumulation component. This type of policy is structured to last for the insured's entire lifetime, as long as the premiums are paid, which offers peace of mind to policyholders and their beneficiaries.

The cash accumulation feature allows policyholders to build cash value over time, which can be accessed during their lifetime through loans or withdrawals. This cash value grows at a guaranteed rate, providing a low-risk investment component to the policy.

In contrast, term life insurance does not have a cash accumulation feature and only pays out a death benefit if the insured passes away during the term of the policy. Universal life insurance also provides a death benefit and allows for cash value accumulation, but it offers more flexibility in premium payments and death benefit amounts compared to whole life. Variable life insurance, while it does include a death benefit and cash accumulation, bases its cash value and potential growth on the performance of underlying investment options, introducing additional risk.

Thus, whole life insurance is distinguished by its combination of guaranteed death benefits and stable cash value accumulation, making it the correct choice.