What type of policy allows the insured to cash out during their lifetime?

Whole life insurance is a type of policy that allows the insured to access the cash value that accumulates over time during their lifetime. This cash value can be borrowed against or withdrawn, providing policyholders with the flexibility to use some of their benefits while they are still alive. Over the duration of the policy, the cash value grows at a guaranteed rate, which can also provide a source of financial support for the policyholder.

In contrast, term life insurance provides coverage for a specified period and does not accumulate cash value, thus does not offer the option to cash out. Accidental death insurance is focused solely on providing benefits in the event of death due to accidents and similarly lacks a cash value component. Health insurance, while crucial for covering medical expenses, does not provide a death benefit or cash value that can be accessed during the insured's lifetime. Therefore, whole life insurance stands out as the policy type that meets the criteria of allowing cash-out options for the insured.