What is a key feature of whole life insurance policies?

Whole life insurance policies are designed to offer lifelong coverage to policyholders, and one of their distinguishing features is that they build cash value over time. This cash value grows at a guaranteed rate set by the insurance company, and policyholders can borrow against this value or use it to help pay premiums in the future. This aspect not only adds a savings component to the policy but also increases the overall value of the policy beyond just the death benefit.

The cash value feature makes whole life insurance appealing to those looking for both protection and a financial planning tool, as it provides a means to accumulate wealth while ensuring that beneficiaries will receive a death benefit upon the policyholder's passing. This contrasts with other types of policies which may not offer this benefit or have limitations on the length of coverage or premium payments.