Which of the following is NOT a feature of whole life insurance?

Whole life insurance is designed to provide lifelong coverage, which means it includes several distinctive features that set it apart from term insurance. One of the essential characteristics of whole life insurance policies is that they have level premiums for the life of the policyholder. This means the premium amount remains constant throughout the life of the policy, making it easier for individuals to budget for insurance costs.

Additionally, whole life insurance guarantees cash value accumulation. A portion of the premiums paid is allocated towards building cash value, which can grow over time, typically at a guaranteed rate. This cash value can be accessed by the policyholder during their lifetime or can be borrowed against, providing financial flexibility.

Another vital feature is the guaranteed death benefit for life, meaning that as long as premiums are paid, the policyholder’s beneficiaries will receive a specified amount upon the insured's death, irrespective of when that occurs within the policyholder's lifetime.

The incorrect choice highlights a significant difference between whole life and term insurance. The initial premium for whole life insurance is generally higher than that of an equivalent term policy. This is because term insurance offers coverage for a specified period, typically at a lower cost, without the same cash accumulation and permanent coverage features that whole life provides. Thus, option C stands out