What is a common feature of all whole life insurance policies?

Whole life insurance policies are designed to provide lifelong coverage, and one of their defining characteristics is the accumulation of cash value over time. This cash value grows at a guaranteed rate set by the insurer and can be accessed by the policyholder through loans or withdrawals, serving as a savings component in addition to the death benefit.

This feature of cash value accumulation distinguishes whole life insurance from term policies, which do not have a cash value and are intended to provide coverage for a specific time period only. As such, the cash value aspect is essential for policyholders who may seek savings or investment options within their life insurance coverage.