What is a key characteristic of whole life insurance?

A key characteristic of whole life insurance is that it provides permanent coverage, typically until the insured reaches the age of 100. Whole life insurance is designed to last for the entirety of the policyholder's life, as long as premiums are paid. This permanence offers policyholders a sense of security, knowing that their beneficiaries will receive a death benefit regardless of when the insured passes away, given that the policy remains in force.

This type of insurance also includes a cash value component, which grows over time and can be accessed by the policyholder. This feature differentiates whole life insurance from term insurance, which only provides coverage for a specified period and does not accumulate cash value.

In contrast, variable premiums throughout the insured's life, exclusive provision of death benefits, and limited availability are not characteristics of whole life insurance. Whole life policies offer predictable premiums that do not change over the life of the policy, provide both a death benefit and a cash value, and are intended for lifelong coverage, as opposed to a set term.