What type of life insurance offers a benefit upon death and builds cash value?

The correct choice is that permanent life insurance offers a benefit upon death and builds cash value. This type of life insurance is designed to provide lifelong coverage as long as premiums are paid. One of the key features of permanent life insurance is its cash value component; part of the premium payments goes into a cash value account, which grows over time on a tax-deferred basis. Policyholders can borrow against or even withdraw from this cash value, providing financial flexibility.

This aspect distinguishes permanent life insurance from other types like term life insurance, which only offers a death benefit without any cash value accumulation. Universal and variable life insurance are actually subcategories of permanent life insurance, each with unique features regarding cash value growth and investment options, but they still fall under the wider classification of permanent life insurance.