What is generally true regarding a whole life insurance policy?

A whole life insurance policy is designed to provide coverage for the duration of the insured's life, distinguishing it from term life insurance, which is limited to a specific timeframe. One of the most notable features of whole life insurance is its cash value component. As premiums are paid, a portion goes toward building cash value, which grows at a guaranteed rate over time. This cash value can be accessed by the policyholder through loans or withdrawals, providing a significant financial tool alongside the protection offered by the death benefit.

While it is true that whole life insurance policies tend to have higher premiums than term insurance, this isn't the defining characteristic of such policies. Additionally, while a health examination may be required for some applicants, it isn't universally mandated for all whole life policies. The focus on the cash value component is what truly sets whole life insurance apart and highlights its value in both protection and as an asset.