Which of the following best describes "whole life insurance"?

Whole life insurance is designed to provide lifelong coverage, meaning it remains in force as long as the premiums are paid, regardless of the insured's age. One of the key features of whole life insurance is its cash value component. This cash value grows over time on a tax-deferred basis and can be accessed by the policyholder through loans or withdrawals. As the policy matures, this cash value can serve as a resource for financial needs or to support retirement planning.

In contrast to whole life, temporary policies, which are often referred to as term insurance, do not build cash value and provide coverage for a specific period. Additionally, some options may focus solely on accidental death or are linked purely to investments rather than providing a comprehensive life insurance benefit with a guaranteed cash value. Thus, the defining features of whole life insurance—its permanence and the cash value component—align perfectly with the characteristics outlined in the correct choice.