Final answer:
A universal life insurance policy provides term insurance protection combined with a cash savings plan, beneficial for financial security and retirement planning. Hence, the correct answer is option A.
Step-by-step explanation:
A universal life insurance policy combines the benefits of term insurance with a cash savings plan. This type of policy includes a death benefit feature like traditional term insurance, but it also has an accumulated cash value component. This cash value can grow over time and can be accessed by the policyholder for various financial needs, which makes it a form of saving for old age. Universal life insurance is a way for individuals to ensure they have a sufficient income in their later years, in addition to providing financial security to beneficiaries in case of the policyholder's death.