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

Whole life insurance is designed to provide lifelong coverage, and one of its defining characteristics is the dual benefit it offers: a guaranteed death benefit and the accumulation of cash value over time. Unlike term insurance, which only pays out if the insured passes away during the term, whole life insurance assures a payout regardless of when the policyholder dies, as long as premiums are paid.

The cash value component is funded through part of the premium payments and grows at a guaranteed rate, providing policyholders with a financial resource they can access during their lifetime through loans or withdrawals. This accumulation of cash value distinguishes it from policies that do not feature this benefit.

The other characteristics of whole life insurance reinforce why the correct answer focuses on these particular features. Whole life is not limited to a specific term; it is intended for the entirety of the insured's life. Additionally, while whole life insurance does have an investment aspect due to cash value accumulation, it should not be viewed primarily as an investment vehicle. Its main purpose is to ensure financial protection for beneficiaries upon the policyholder’s death.