How is "whole life insurance" defined?

Whole life insurance is defined as a permanent policy that guarantees a death benefit as well as the accumulation of cash value over time. This type of insurance provides coverage for the entire lifetime of the insured, as long as the premiums are paid. One of the key features of whole life insurance is the cash value component, which grows at a guaranteed rate and can be borrowed against or withdrawn, providing additional financial benefits to the policyholder while they are alive.

The emphasis on permanence and the dual benefit of both a death benefit and cash value accumulation distinguishes whole life insurance from other forms of life insurance, such as term insurance, which typically does not have a cash value and only pays out if the insured passes away during the policy term.