Which of the following is an advantage of whole life insurance?

Whole life insurance is a permanent life insurance product that offers a range of advantages, one of the most notable being its ability to build cash value over time. This cash value component accumulates at a guaranteed rate and can be borrowed against or withdrawn by the policyholder. As the policy matures, the cash value can grow, providing a financial asset that policyholders can utilize during their lifetime, unlike term life insurance which provides purely death benefit protection without any cash value.

The cash value growth is a significant benefit because it can enhance the policyholder's financial flexibility, offering options such as taking out loans against the policy or using the cash value to cover premiums, effectively modifying the policyholder's financial strategy as life circumstances change. This growth feature also contributes to the overall financial security that whole life insurance offers, making it an attractive option for individuals looking for both life coverage and an investment component.