What is a defining feature of whole life insurance?

Whole life insurance is characterized by offering lifetime coverage at a level premium. This means that individuals who purchase whole life insurance are guaranteed to have coverage for their entire life, as long as the premiums are paid. The premiums remain consistent throughout the insured's life, making it easier for policyholders to budget for this expense.

This type of insurance not only provides a death benefit to beneficiaries but also has a cash value component that accumulates over time. This cash value grows at a predetermined rate and can be borrowed against or withdrawn by the policyholder while still maintaining the insurance coverage. The stability of premiums and the lifelong coverage are particularly appealing for those looking for certainty in their financial planning.

In contrast, options that suggest a specific term, limitations on benefits, or a focus solely on investment aspects do not align with the fundamental principles of whole life insurance. These factors highlight why the defining feature of whole life insurance is its provision of lifetime coverage at a consistent premium.