What is one characteristic of a whole life insurance policy?

A whole life insurance policy is designed to provide coverage for the insured’s entire life, as long as premiums are paid. One of its defining features is that it comes with fixed premiums, meaning the amount you pay does not change over time. This stability allows policyholders to plan their finances with certainty, knowing that their premium payments will remain consistent throughout their lifetime.

In addition to lifelong coverage and fixed premiums, whole life policies often accumulate cash value over time, which can be borrowed against or withdrawn by the policyholder. This feature adds a savings component to the insurance coverage, contributing further to the appeal of whole life insurance.

The other characteristics related to fluctuating premiums, mandatory medical exams, and limited terms are not applicable to whole life policies, as they are designed to provide lasting coverage without the uncertainty of changing payment amounts or the temporary nature of term insurance.