What does "whole life insurance" mean for cash accumulation?

Whole life insurance is designed as a permanent life insurance policy that not only provides a death benefit but also accumulates cash value over time. This cash value builds at a guaranteed rate and can be accessed by the policyholder during their lifetime. As premiums are paid, a portion of each payment goes toward the cash value, allowing it to grow over time. This accumulation of cash value is one of the key features of whole life insurance, distinguishing it from term life insurance, which does not build any cash value.

The ability for policyholders to access the cash value is significant because it can be borrowed against or withdrawn, providing financial flexibility in times of need. This makes choice B accurate, as it captures the essence of how whole life insurance functions in terms of cash accumulation.