Final answer:
Universal life option B allows the beneficiary to receive both the standard death benefit and the accumulated cash value when the insured person passes away.
Step-by-step explanation:
The life insurance policy that permits a beneficiary to receive both the death benefit and the cash value upon the death of the insured is Universal life option B. In comparison to other policies, Option B policies from a universal life insurance plan offer a death benefit that includes the policy's cash value. This means that upon the death of the policyholder, beneficiaries receive the amount of the death benefit in addition to the accumulated cash value.
Cash-value (whole) life insurance is designed to not only provide a death benefit to the beneficiaries but also builds a cash value over time, which can be used by the policyholder while they are alive. If the policyholder does not use the cash value, it is often returned to the insurance company upon the individual's death unless a policy like Universal life option B is chosen, which returns it to beneficiaries.