Final answer:
Whole life insurance is a policy that offers both a cash value component and level death benefit, functioning as both a financial safety net and a form of savings for the policy owner. The correct answer is option A.
Step-by-step explanation:
The type of life insurance policy that provides the policy owner with both a cash value and a level face amount is known as whole life insurance. This policy not only has a death benefit but also accumulates cash value over time, which the policy owner can use.
The cash value acts like a savings account within the policy, and the policyholder may borrow against this value under certain conditions, with the expectation of paying it back with interest. Whole life policies, unlike term insurance policies, provide coverage for the lifetime of the insured, as long as premiums are paid as required.