Which statement best describes whole life insurance?

Whole life insurance is best described as a policy that is designed for permanent coverage and has the feature of accumulating cash value over time. This type of insurance provides lifelong protection, ensuring that the death benefit is paid out to beneficiaries regardless of when the insured passes away, as long as premiums are paid. Additionally, one unique aspect of whole life insurance is that it builds cash value, which policyholders can borrow against or withdraw from, providing them with a financial asset that can be used in various ways throughout their lives.

The other options do not accurately capture the essence of whole life insurance; therefore, they do not convey its primary attributes. For example, limited coverage for a short term is more characteristic of term life insurance rather than whole life. The statement about no premium payments after a certain age might be related to some types of insurance but does not specifically apply to whole life policies, which typically require lifelong premium payments unless a paid-up option is selected. Lastly, whole life insurance is generally individual coverage, not primarily focused on group coverage, which is more common in employer-sponsored life insurance plans.