What is a unique feature of whole life policies compared to term policies?

Whole life policies are designed to provide coverage for the insured's entire lifetime, as long as premiums are paid, and one of their key features is the ability to accumulate cash value over time. This cash value grows at a guaranteed rate and can be accessed by the policyholder through loans or withdrawals, making it a significant advantage of whole life insurance over term policies, which do not have a cash value component.

In contrast, term policies are typically issued for a specific duration and do not build cash value; their purpose is primarily to provide a death benefit during the coverage period. Therefore, the accumulation of cash value in whole life policies distinguishes them fundamentally from term policies, as this aspect not only enhances the policy's value while alive but also serves as a financial resource for the policyholder.