What is a characteristic of whole life insurance?

Whole life insurance is designed to provide coverage for the insured's entire lifetime, as long as premium payments are maintained. This characteristic sets it apart from term life insurance, which only covers the insured for a specific period. Whole life insurance also builds cash value over time, which can grow and be borrowed against or withdrawn, adding another layer of benefit to the policyholder. This lifelong coverage means beneficiaries are guaranteed a death benefit, regardless of when the insured passes away, as long as the policy is active.

The other options highlight features that do not apply to whole life insurance: it does not have a limit on the term (the policy does not expire after a set period), it does have a cash value component, and while whole life insurance premiums are generally higher initially, they remain level throughout the policyholder's life rather than lowering over time.