Which insurance type guarantees a level premium and cash value accumulation?

Whole life insurance is a type of permanent life insurance that ensures a level premium throughout the policyholder's lifetime. This means that the premium amount does not increase as the insured ages or as interest rates fluctuate, making it predictable and stable for budgeting purposes.

Additionally, whole life insurance policies provide a cash value component that accumulates over time. A portion of the premiums paid into the policy is allocated to build this cash value, which grows on a tax-deferred basis. Policyholders can access the cash value through loans or withdrawals, providing a source of savings that can be utilized in emergencies or other financial needs.

In contrast, term life insurance offers coverage for a specified term and does not build cash value, making it unsuitable for those looking for both insurance protection and an investment component. Universal insurance does allow for some flexibility in premium payments and death benefits but typically varies the premiums and has different complex features. Fixed annuities are not a form of life insurance but rather an investment product designed to provide a steady income stream, thus lacking the life insurance component altogether. This makes whole life insurance the only option among the choices that guarantees both a level premium and cash value accumulation.