Which of the following is a characteristic of whole life insurance?

A key characteristic of whole life insurance is that it builds cash value over time, which policyholders can access during their lifetime. Whole life insurance is designed to provide lifelong coverage, as long as premiums are paid, and part of the premium goes towards creating a cash value component. This cash value grows at a guaranteed rate and can be borrowed against or withdrawn, providing policyholders with a financial resource they can utilize while they are still living.

This element of cash value distinguishes whole life insurance from term insurance, which typically does not accumulate any cash value and only provides coverage for a specified period. Whole life insurance remains in effect throughout the insured's life, as long as premiums are maintained, unlike the other options which either limit the duration of coverage or do not offer access to cash value.