What is a characteristic feature of whole life insurance that distinguishes it from term life insurance?

Whole life insurance is distinct from term life insurance primarily due to its guaranteed cash value accumulation feature. This means that a portion of the premiums paid goes towards building a cash value, which grows over time at a guaranteed rate. This cash value can be accessed by the policyholder during their lifetime through withdrawals or loans, providing financial flexibility and serving as a potential source of funds for emergencies or investments.

In contrast, term life insurance provides coverage for a specified period, without any cash value feature. The premiums for term policies are generally lower than those for whole life, but they do not accumulate value or provide lifelong coverage. Additionally, term life policies do not offer adjustable death benefits, as the coverage amount and term are fixed at the outset. Therefore, the unique ability of whole life insurance to accumulate cash value is a fundamental trait that sets it apart from term life insurance.