Final answer:
Out of the given options, Whole life insurance provides permanent protection as it covers the insured's entire life and accumulates cash value that can be used by the policyholder.
Step-by-step explanation:
The question concerns different policy types for life insurance. When discussing permanent protection, one needs to understand the distinctions between the types of policies. Whole life insurance provides coverage for the insured's entire life as long as premiums are paid, and it includes a savings component known as cash value, which can be utilized by the policyholder. Therefore, out of the options provided, the whole life insurance policy offers permanent protection.
On the other hand, term life insurance provides protection for a specific period and does not accumulate cash value. Credit life insurance is designed to pay off a borrower's debts if the borrower dies. And group life insurance is typically a term policy provided through an employer or association, which may not be permanent. If an insurance company charges the actuarially fair premium to the whole group without considering varying risk factors such as family cancer histories, it may have to increase premiums for the entire group to cover the higher risk, which could lead to losing lower-risk customers and financial imbalance.