What characterizes whole life insurance?

Whole life insurance is characterized by providing coverage for the entire lifetime of the insured, as long as premiums are paid, and it typically matures at age 120. This means that regardless of when the insured passes away, the policy will pay out a death benefit to the beneficiaries, ensuring lifelong protection.

The structure of whole life insurance includes a savings component, which accumulates cash value over time, in addition to the death benefit. This distinguishes it from term life insurance, which only provides coverage for a specified period and does not build cash value. Whole life policies are designed with the purpose of guaranteeing both the death benefit and the accumulation of cash value, leading to lifelong coverage that remains in force as long as premiums are maintained.