What is one key feature of whole life insurance?

Whole life insurance is characterized by a fixed premium for the duration of the policy, which means that the policyholder pays the same premium amount throughout the life of the policy. This feature provides predictability and stability in budgeting for insurance costs, making it an attractive option for long-term financial planning. Additionally, whole life insurance policies typically include a death benefit and a cash value component that grows over time, which can be borrowed against or withdrawn under certain conditions.

In contrast, the other options do not accurately reflect the nature of whole life insurance. For instance, it does not have an age-based limitation like being effective only until age 65; rather, it remains in force as long as premiums are paid. The death benefit of a whole life policy remains level, rather than decreasing as seen in term life insurance or other products. Finally, whole life insurance is known for its ability to accumulate cash value, which can be a significant benefit to policyholders over the long term.