What type of insurance is referred to as 'whole life insurance'?

Whole life insurance is a type of permanent insurance that remains in effect for the insured's entire lifetime, as long as the premiums are paid. This type of policy not only provides a death benefit to the beneficiaries upon the death of the insured but also includes a cash value component that grows over time. The cash value builds at a guaranteed rate and can be borrowed against or withdrawn by the policyholder.

Unlike temporary policies, which only offer coverage for a specified period and do not accumulate cash value, whole life insurance provides lifelong protection and the potential for financial benefits while the insured is still living. Furthermore, whole life policies do not specifically target accidental death or offer annual renewals, as they are designed to provide comprehensive coverage throughout one's life. Therefore, the characteristic of having a cash value growth and lifetime coverage is what makes whole life insurance distinct and aligns with the answer provided.