What type of life insurance provides lifetime coverage and includes a cash value component?

Whole life insurance provides lifetime coverage and includes a cash value component. This type of policy is designed to last for the insured's entire life, as long as the premiums are paid. One of the key features of whole life insurance is the accumulation of cash value over time, which is an important saving and investment aspect. This cash value grows at a guaranteed rate and can be borrowed against or withdrawn by the policyholder, providing flexibility and financial resources during the policyholder's lifetime.

In contrast, term life insurance only provides coverage for a specified term or period, without any cash value component. Endowment policies, while they can have a cash value, are typically designed to pay out a benefit after a set period or upon the policyholder's death, rather than providing lifelong coverage. Convertible term insurance allows the policyholder to convert a term policy to a permanent one, but until conversion occurs, it does not possess the cash value feature characteristic of whole life insurance. Therefore, whole life insurance stands out as the comprehensive life insurance option with both lifetime coverage and a cash value component.