What is a key feature of a whole life insurance policy?

A key feature of a whole life insurance policy is that it accumulates cash value over time. Whole life insurance provides lifelong coverage, which means that as long as the policyholder continues to pay the premiums, the policy remains in force for their entire life. A certain portion of the premiums paid contributes to the cash value, allowing the policy to grow over time, which can be borrowed against or withdrawn by the policyholder if needed. This cash value is a significant differentiator from term life insurance policies, which do not build any cash value and provide only temporary coverage for a specified term. The certainty and stability of whole life insurance are reinforced by its predictable premium payments that do not fluctuate and the benefits it provides, which is helpful for individuals seeking long-term financial planning and security.