What characterizes a whole life insurance policy?

A whole life insurance policy is characterized by its lifelong coverage combined with a savings component, which accumulates cash value over time. This type of policy is designed to remain in force for the insured's entire lifetime, as long as premiums are paid. The cash value that builds within the policy can be borrowed against or withdrawn, offering a financial benefit beyond just the death benefit protection. This distinction sets whole life policies apart from other types, such as term life insurance, which only provide coverage for a specified number of years without accumulating cash value.