Which of the following is true regarding whole life insurance?

Whole life insurance is designed to provide coverage for the insured's entire lifetime, as long as premiums are paid. This feature sets it apart from term life insurance, which only provides coverage for a specified term and does not offer lifetime protection. Whole life insurance combines death benefits with a savings component, allowing it to accumulate cash value over time.

The nature of whole life insurance means that it remains in force for the policyholder’s life, irrespective of health changes or age. As long as premiums are being paid, the insurance remains active, making it a key aspect of the security it offers. This is crucial for individuals looking for long-term stability and financial planning resources, as it assures their beneficiaries a death benefit no matter when they pass away.

The incorrect answers highlight different aspects of whole life insurance. The assertion about whole life being less expensive than term life is misleading, as whole life insurance generally carries higher premiums due to its lifelong coverage and cash value benefits. The claim that it does not build cash value is also inaccurate, as one of the significant features of whole life policies is their ability to accumulate cash value over time. Lastly, the idea that it automatically converts to term insurance at a certain age does not apply to whole life insurance, as these policies