A policy that covers an individual's entire life with a fixed premium is referred to as what kind of policy?

A policy that covers an individual's entire life with a fixed premium is known as a whole life policy. This type of policy is designed to provide lifelong coverage, as it remains in force as long as the premiums are paid. The fixed premium aspect ensures that the cost of the insurance remains constant throughout the life of the policyholder, facilitating budgeting and planning.

Additionally, whole life policies often build cash value over time, which can be borrowed against or withdrawn, providing an added financial benefit to the insured. This distinguishes it from other types of policies, such as term life, which only provides coverage for a specified period and does not accumulate cash value. Universal life policies offer flexibility in premium payments and death benefits but can fluctuate in cost depending on investment performance. Endowment policies, on the other hand, are designed to pay a benefit either upon death or if the insured survives to a specified age, making them different from whole life policies in terms of their structure and intent.