Final answer:
For life insurance protection with cash value buildup, where premiums are paid until retirement, Straight life (whole life) insurance policy is the best fit. It combines a death benefit with a savings component that accumulates cash value, useful for retirement planning. Other policies like limited payment life, annuities, or endowments serve different needs.
Step-by-step explanation:
If an individual desires life insurance protection and cash value buildup, and is willing to pay premiums until retirement, the type of policy that would best suit this need is a Straight life (also known as whole life) insurance policy. This type of insurance provides coverage for the life of the insured, provided premiums are paid as required. Unlike term insurance, straight life insurance policies build up cash value over time, which can be borrowed against or even cashed out if the policy is surrendered. The cash value in a whole life insurance policy accumulates on a tax-deferred basis, serving as an account for your use, which can be a significant benefit for retirement planning. On top of providing a death benefit to beneficiaries, it doubles as a savings element, accumulating cash value that the policyholder can utilize during their lifetime, if needed.
It's important to note that other options like limited payment life insurance, annuities, and endowment policies serve different purposes. Limited payment life insurance allows for coverage after a set number of years have been paid; an annuity provides a fixed sum of money every year after retirement; and an endowment policy pays out the policy value after a set period or upon death. However, for ongoing premium payment with cash value buildup and lifetime protection, straight life insurance is generally the preferred choice.