What characterizes Whole Life insurance policies?

Whole Life insurance policies are characterized by their lifelong coverage, which remains in effect as long as the policyholder continues to pay the premiums. This means that the policy can provide a death benefit to the beneficiaries at any time, up until the insured reaches the age of 100. The design of Whole Life policies ensures that they are structured to last throughout the lifetime of the insured, making it a valuable option for those looking for permanent life insurance.

Additionally, these policies typically accumulate a cash value over time, which can be accessed by the policyholder, further distinguishing them from other types of life insurance. The requirement to continue premium payments is essential for maintaining the policy's validity; failure to do so may result in the policy lapsing.