Final answer:
Indexed Universal Life Insurance is the policy that offers benefits similar to both whole life and universal life insurance, including permanent coverage, flexible premiums, and potential cash value growth tied to a market index.
Step-by-step explanation:
The life insurance policy that provides a blend of the benefits of traditional whole life and universal life is Indexed Universal Life Insurance. This type of policy offers the permanent coverage and cash-value component of whole life insurance while providing more flexibility in premium payments and the potential for cash value growth tied to a specific index, similar to universal life. Indexed Universal Life Insurance allows policyholders to allocate cash value amounts to either a fixed account or an equity index account. This gives the policy the potential for growth based on the performance of a market index without the risk of losing the cash value in the event of market downturns, as the policy typically includes a guaranteed minimum interest rate.
Many people have different kinds of insurance, including health insurance, car insurance, house or renter's insurance, and life insurance. These are meant to protect individuals and their families from various risks. A life insurance policy not only provides a financial safety net to survivors but can also accumulate cash value, which can be borrowed against.