What is the main feature of a whole life policy?

A whole life policy is characterized primarily by providing lifelong protection for the policyholder. This means that as long as the premiums are paid, the insurance coverage remains in force until the death of the insured, regardless of their age at that time.

In addition to this lifetime coverage, a whole life policy also includes a savings component, which accumulates cash value over time. This cash value grows at a guaranteed rate and can be borrowed against or withdrawn by the policyholder, providing financial flexibility. The combination of lifelong protection and the accumulation of cash value distinguishes whole life policies from other types of insurance, such as term life, which only provides coverage for a specified period.

This unique blend of insurance and savings makes whole life policies particularly appealing to individuals looking not only for protection but also for a financial investment.