What is a common characteristic of Whole Life insurance policies?

Whole Life insurance policies are designed to provide coverage for the insured's entire lifetime, which is a defining characteristic of this type of policy. Unlike term life insurance, which offers coverage for a specific period and expires at the end of that term, whole life insurance remains in force as long as the premiums are paid. This feature ensures that beneficiaries will receive a death benefit whenever the insured passes away, thus providing a level of financial security over the insured's lifetime.

In addition to the lifelong coverage, whole life policies typically build cash value over time, which can be accessed by the policyholder during their lifetime. This aspect contributes to the appeal of whole life insurance as a financial planning tool, allowing individuals not only to secure a death benefit for their family but also to accumulate a savings component, providing both protection and value.