Final answer:
The correct answer is B. Whole Life insurance. Whole Life policies contain a cash-value component that grows over time and is designed to equal the policy's face value by the time the policyholder reaches 100-120 years of age.
Step-by-step explanation:
The life insurance policy that contains a cash-value savings component that matures to the face value of the policy at the age of 100-120 is Whole Life insurance. Whole life policies are designed to provide coverage for the insured's entire lifetime, coupled with a savings component, known as the policy's cash value. As the policyholder pays premiums over time, part of these payments go towards the cash value, which grows at a guaranteed rate. When the policyholder reaches 100-120 years of age, the cash value is meant to equal the face value of the policy, effectively maturing the policy.
Unlike Whole Life, Term Life insurance provides coverage for a specific period without a savings component. Universal Life insurance offers a more flexible premium and death benefit structure with a cash-value component but does not guarantee the cash value to reach the face value at a certain age. Lifetime Annuities are financial products that provide a stream of income for life and are not life insurance policies. Therefore, Lifetime Annuities do not accumulate a cash value that matures at a certain age.