Which policy provides lifetime protection and a cash value component?

Whole life insurance is designed to provide lifetime protection to the insured. This type of policy remains in force for the insured's entire life, provided that premiums are paid as required. One of the key features of whole life insurance is its cash value component, which accumulates over time. Policyholders can access this cash value through loans or withdrawals, adding a layer of financial flexibility. As the policy matures, the cash value grows at a guaranteed rate, and it can serve as a savings component that can be utilized in the future.

In contrast, level term insurance, annually renewable term, and decreasing term policies do not offer a cash value component. These types of policies are designed to provide death benefits for a specific period, but they lack the savings aspect that characterizes whole life insurance. Thus, while they can offer important protection for a designated term, they do not provide the lifetime coverage and financial accumulation features that whole life insurance does.