What is a common expectation of policyholders when they buy a whole life insurance policy?

When policyholders purchase a whole life insurance policy, a common expectation is that the policy will accumulate cash value over time. Whole life insurance is designed as a permanent insurance solution, which not only provides a death benefit but also builds cash value that policyholders can borrow against or withdraw under certain conditions. This cash value grows at a guaranteed rate, contributing to the financial planning aspects of the policy.

In contrast to other types of life insurance, such as term life that does not accumulate any cash value, the whole life policy offers this incremental growth, making it an attractive option for those looking to have both insurance coverage and an investment component. This expectation is often a primary reason individuals choose whole life insurance over other types, as it provides both security and a savings element.