Final answer:
A Whole Life insurance policy is the type that pays out upon the insured's death or when the insured turns 100, consisting of both a death benefit and a cash value component. It is distinct from Term Life, Credit Life, and Universal Life insurance policies.
Step-by-step explanation:
The type of life policy that either pays the face value upon the death of the insured or when the insured reaches age 100 is a Whole Life insurance policy. Whole life policies are designed to last for the insured's entire lifetime, and they have two main components: a death benefit and a cash value. The cash value of a whole life policy can accumulate over time and can be used by the policyholder for various purposes, making it a type of cash-value life insurance. Whole life policies stand in contrast to term life, credit life, and universal life policies, each of which has different features and purposes.
Life insurance is a critical component of many people's financial plans, offering a way to provide for family members in case of the insured's death. Understanding the different types of life insurance policies, and how they work, can help individuals choose the best coverage for their needs.