What distinguishes whole life insurance from other types of insurance?

Whole life insurance is distinguished from other types of insurance primarily by its provision of lifelong coverage along with the benefit of cash value accumulation. This type of policy remains in force for the insured's entire life, as long as premiums are paid, ensuring that beneficiaries receive a death benefit no matter when the insured passes away.

In addition to the lifelong coverage, whole life insurance includes a savings component that allows the policy to accumulate cash value over time. This cash value grows at a guaranteed rate and can be borrowed against or withdrawn, providing policyholders with a financial resource if needed during their lifetime. This combination of lifelong protection and cash value makes whole life insurance unique compared to term or other forms of insurance, which generally provide coverage for a specified period only and do not accumulate cash value.