Whole life insurance is characterized by which statement?

• A. It never builds cash value
• B. It remains in effect until age 100 as long as premiums are paid
• C. It requires premiums to stop at 65
• D. It only pays if the insured dies after age 100

Answer: (B)

Whole life provides permanent protection with fixed premiums and a cash value component that grows over time. A core point is that the policy remains in force for the insured’s life as long as premiums are paid, so the death benefit is available whenever the insured dies. This is why the statement that aligns with permanent coverage—staying in effect as long as you keep paying—best describes whole life.

Cash value is a built-in feature, not something separate or optional, and it grows tax-deferred and can be borrowed against or used to help fund premiums later. In contrast, one option suggests no cash value, another implies premiums end at a certain age, and another narrows eligibility to a payout only after age 100. Those don’t fit the fundamental nature of whole life: permanent coverage with level premiums and an accumulating cash value.