Which type of insurance policy combines savings and insurance elements?

Whole life insurance is the type of policy that combines both savings and insurance elements. This policy not only provides a death benefit to the policyholder's beneficiaries upon their passing but also accumulates cash value over time. The cash value grows at a guaranteed rate and can be accessed by the policyholder through loans or withdrawals, providing a savings component in addition to the primary insurance coverage.

In contrast, traditional life insurance primarily focuses on providing a death benefit and does not include a savings feature. Term insurance, specifically, is designed to cover a set term with no cash value accumulation, making it purely a death benefit product. Accidental death insurance also provides benefits solely upon accidental death and lacks a cash value or savings aspect, focusing exclusively on risk coverage. Therefore, whole life insurance uniquely offers the combination of both insurance protection and a savings or investment element.