Which type of insurance provides payments for the rest of the policyholder's life and a lump sum death benefit for beneficiaries?

Whole life insurance is designed to provide lifelong coverage for the policyholder, which means that as long as premiums are paid, the insurance remains in effect throughout the policyholder’s life. One of the key features of whole life insurance is that it not only offers a death benefit that is paid to beneficiaries upon the policyholder's death, but it also has a cash value component that accumulates over time. This cash value can be borrowed against or withdrawn, providing potential financial flexibility during the policyholder's lifetime.

The death benefit, which is a lump sum paid to beneficiaries, gives assurance that they will receive financial support upon the policyholder's death. This combination of lifelong coverage and the cash value aspect distinguishes whole life insurance from other types of life insurance products, making it a popular choice for individuals looking for both permanent life coverage and an investment component.