What is a key characteristic of Whole Life insurance?

Whole Life insurance is designed with a fixed death benefit, which is one of its defining features. This means that the amount of money paid out to beneficiaries upon the policyholder's death remains constant throughout the life of the policy, as long as the premiums are paid consistently. This fixed nature provides policyholders with a sense of stability and predictability regarding the insurance coverage they have.

While the other characteristics presented in the choices may relate to different types of insurance, they do not describe Whole Life insurance accurately. For instance, a flexible premium is more characteristic of Universal Life insurance, which allows policyholders to adjust their premium payments. Additionally, Whole Life insurance is intended for long-term ownership, not a short duration, and it does provide a cash value component that grows over time, which can be borrowed against or withdrawn by the policyholder. Therefore, the key characteristic of Whole Life insurance is indeed that it has a fixed death benefit.