Final answer:
A life insurance policy with a fixed amount that cannot be changed is called whole life insurance. It offers a fixed death benefit and a cash value that accumulates over time, which can be an asset for the policyholder.
Step-by-step explanation:
A life insurance policy that has a face amount that cannot be changed is known as a whole life insurance policy. Unlike term life insurance, which is for a specific term, or variable and universal life insurance policies, which allow for changes in investments and premiums, whole life insurance provides a fixed death benefit and a cash value component that can be used by the policyholder over time.
Cash-value (whole) life insurance is designed to last the entire lifetime of the policyholder as long as premiums are paid. The cash value accumulates throughout the policy's existence and can potentially be borrowed against or withdrawn by the policyholder. It significantly affects the total value of the policy over time and can be an asset to the policyholder.