What typically differentiates whole life from term life insurance?

Whole life insurance is characterized by providing permanent coverage for the insured's entire lifetime, as long as premiums are paid. This means that the policy does not expire after a certain period, unlike term life insurance, which provides coverage for a specific term or duration (e.g., 10, 20, or 30 years) but does not offer protection beyond that period unless renewed.

Furthermore, whole life policies often build cash value over time, which can be accessed by the policyholder, whereas term life does not accrue any cash value and purely serves as a death benefit for the duration of the term. This fundamental distinction is what makes whole life insurance suitable for individuals seeking lifelong coverage and potential cash value accumulation, while term life is typically more affordable and serves a different purpose.

The other options presented involve incorrect characteristics of these types of insurance. Whole life does not have variable interest rates but rather fixed rates related to the guaranteed growth of cash value and death benefit, making it stable over time. Moreover, whole life is generally more expensive due to its lifelong coverage and cash value component, which contradicts the idea that it is cheaper than term life policies. Lastly, the statement regarding cash value is reversed; whole life does offer cash value, while term