What type of insurance benefits both the insurer and insured by establishing a premium payment agreement?

The type of insurance that benefits both the insurer and the insured by establishing a premium payment agreement is whole life insurance. Whole life insurance provides lifelong coverage and accumulates cash value over time, which can be borrowed against or withdrawn by the policyholder. The premium payments are typically fixed, allowing the insured to plan their finances around a consistent payment structure.

With term insurance, coverage is only for a specified period, and if the insured does not pass away during that time, the premiums paid do not lead to any cash value or benefits, which does not equally benefit the insurer and insured in the same way as whole life. Endowment insurance, while it also has a savings component, is primarily focused on providing a lump-sum payout after a specified term or upon death, not primarily on the premium agreement aspect. Industrial insurance typically involves smaller face amounts and is meant for lower-income families, which does not emphasize the broader benefits tied to premium agreements.

Thus, whole life insurance stands out as it creates a long-term relationship beneficial to both parties through consistent premium payments while also offering the insured lifelong protection and a cash value component.