Final answer:
A 20-pay life insurance policy provides lifelong death protection with premiums only paid for 20 years, offering a combination of financial security and savings through its accumulated cash value.
Step-by-step explanation:
The type of life insurance policy that provides death protection for the insured's entire life, but premiums are not paid for the entire life of the insured is known as a 20-pay life policy. These types of policies are structured so that premiums are paid over 20 years, after which no further premiums are due, but the policy remains in force until the insured's death.
Cash-value (whole) life insurance not only has a death benefit but also accumulates a cash value. This can be used by the policyholder for various financial needs, potentially even borrowing against the policy. However, it's important to know that loans against the insurance policy accrue interest and need to be repaid.
Having an insurance plan is an essential method of protecting oneself from financial losses, which is especially true for life insurance policies that ensure financial protection for an individual's dependents after their demise.