What does a whole life policy provide?

A whole life policy provides lifelong coverage to the policyholder, which means that as long as premiums are paid, the insured will have insurance protection for their entire life. This type of insurance also typically includes a cash value component that accumulates over time, allowing for the policyholder to borrow against it or use it in other ways.

While the option selected mentions limited term payments, whole life insurance is characterized by level premiums that do not change over time, ensuring that the policy remains in force for the duration of the insured's life. This stability makes it an appealing choice for individuals seeking long-term security without the risk of a lapse in coverage that could come with term policies.

Other options imply features that do not pertain to whole life insurance. Investment opportunities with variable returns are associated with variable life policies, not whole life. Lifetime coverage with premiums that can increase refers to universal life insurance, which has flexible premiums and death benefits. Finally, protection linked to market indexes pertains to indexed life insurance, which ties the cash value growth to a stock market index. Thus, the most accurate representation of whole life insurance is the one that highlights lifelong protection with stable premiums.