What benefit is typically included in whole life insurance policies?

Whole life insurance policies are designed to provide a lifelong death benefit along with a savings component known as cash value. This cash value is built up over time as premiums are paid, growing at a guaranteed rate. Policyholders can borrow against this cash value or withdraw from it, providing them with financial flexibility. The accumulation of cash value is a significant characteristic that distinguishes whole life insurance from term life insurance, which typically offers temporary coverage without any savings or investment component.

The other choices do not align with the typical features of whole life insurance. For instance, whole life policies do not have premiums that increase with age; instead, premiums remain level throughout the life of the policy. Additionally, there are normally no limitations on renewability since whole life insurance is intended to last for the insured's entire life, unlike certain term policies that might have specific renewability clauses.