Which statement is true regarding whole life insurance?

Whole life insurance is designed to provide coverage for the entire lifetime of the insured as long as the premiums are paid. This distinguishes it from term life insurance, which only provides coverage for a specified period and does not build cash value. Whole life policies also include a cash value component that grows over time, which is not a feature found in term policies.

The premium payments for whole life insurance typically remain constant throughout the life of the policy, eliminating the need for annual renewal, which is common in term insurance. The continuous nature of coverage reflects the core essence of whole life insurance, which assures policyholders that their beneficiaries will receive a death benefit regardless of when the insured passes away, provided that premiums are maintained. This lifetime protection is a key feature that appeals to individuals seeking long-term financial security for their loved ones.