Which type of life insurance policy combines annual renewable term insurance with a cash value account?

Whole life insurance provides coverage for the life of the insured and includes a cash value component that grows at a fixed rate. Unlike universal life, whole life policies have fixed premiums and death benefits, lacking the flexibility to adjust as life circumstances change. This rigidity makes whole life distinct from universal life, which allows for annual renewable term insurance features.

Endowment insurance pays out a lump sum either on a specific date or upon the death of the insured, whichever occurs first. While it may have a cash value component, it does not function as an annual renewable term policy and typically has a fixed term. This fundamentally distinguishes endowment policies from universal life insurance.

Variable life insurance includes both a death benefit and a cash value component, but the cash value is invested in various investment options, which can lead to fluctuating cash values and death benefits. Unlike universal life insurance, it does not combine annual renewable term features and presents more investment risk, making it less suitable for those seeking the combination specified.