Which of the following statements accrues to the benefits of a life insurance policy holder?

The chosen answer emphasizes the fundamental nature of a life insurance policy as a contract between the insurer and the policyholder. This contract stipulates the obligations and rights of both parties: the insurer promises to pay a death benefit to beneficiaries upon the death of the insured, while the policyholder agrees to pay premiums to keep the policy in force. This mutual agreement is what provides protection and security, forming the basis of the policyholder's benefits.

The other statements do not accurately reflect the benefits that accrue to a life insurance policyholder. For instance, a policyholder may have the option to transfer or assign the policy under certain conditions, which does not align with the assertion that it cannot be transferred. Furthermore, many life insurance policies build cash value over time, particularly whole life policies, contradicting the statement that there is no associated cash value. Lastly, while an individual's health can affect eligibility and premiums, a life insurance policy is not fully dependent on the insured’s health status and can be enforced regardless of changes in health after the policy is issued if premiums are maintained.