Primerica General Practice Exam

Whole life insurance is primarily known for providing lifelong coverage and accumulating cash value over time. This type of insurance is designed to remain in force for the policyholder's entire life, as long as premiums are paid. It offers a death benefit to beneficiaries upon the policyholder's death, ensuring financial protection for loved ones.

One of the key features of whole life insurance is its cash value component, which grows at a guaranteed rate over time. The cash value can be accessed by the policyholder through loans or withdrawals, providing a source of funds for emergencies, investments, or other needs. This accumulation of cash value distinguishes whole life insurance from other types of life insurance, such as term insurance, which does not build cash value and only provides coverage for a specified period.

Additionally, while whole life insurance may have higher premiums compared to term insurance, its lifelong coverage and cash value growth make it an attractive option for individuals seeking both protection and a financial asset.