What is a defining feature of whole life insurance?

A defining feature of whole life insurance is its ability to accumulate cash value while providing lifelong coverage. Whole life policies are designed to remain in force for the insured's entire lifetime as long as premiums are paid. This characteristic inherently differentiates it from term insurance, which only provides coverage for a specified period without a cash value component.

The cash value aspect allows policyholders to build savings over time, which can be borrowed against or withdrawn if needed. This dual benefit of lifelong protection coupled with the cash value accumulation makes whole life insurance a desirable option for those looking for both security in terms of coverage and a savings mechanism.

This comprehensive nature of whole life insurance aligns with the understanding of it being both a protective insurance policy and a financial asset, appealing to individuals who prioritize long-term financial planning.