Which pays the face amount plus cash value at death?

The correct answer is Universal Life Option B, which indeed pays the face amount plus cash value at death. In this particular option of a universal life insurance policy, the death benefit consists of the policy's face amount along with any accrued cash value. This is appealing because it offers a death benefit that can potentially be higher than just the face amount alone, as it includes the savings component of the policy that builds cash value over time.

Universal Life Option A, on the other hand, provides only the face amount as the death benefit, without the addition of any cash value, which distinguishes it from Option B. Whole Life insurance provides a guaranteed death benefit and builds cash value, but it does not typically offer the flexibility and investment options associated with universal life policies. Level Term insurance solely offers a death benefit for a specified term without accumulating cash value, thus it would not provide the additional benefit of cash accumulation at death.

Understanding these distinctions is crucial for selecting the right type of life insurance based on individual needs, especially when evaluating the death benefits and potential cash values associated with different policies.