What option are proceeds retained by the company and interest at a minimum guaranteed rate is paid to the beneficiary?

The option you are referring to is typically known as a "guaranteed investment" or "participating whole life insurance" policy. In this arrangement, the insurance company retains the proceeds from the policy while providing the beneficiary with a minimum guaranteed interest rate on the funds. This ensures that the beneficiary receives a steady income while the company manages the investment of the principal. Such options are often used for long-term financial planning and wealth accumulation.