Which of the following is NOT considered a feature of whole life insurance?

Whole life insurance is characterized by several key features that distinguish it from other types of insurance, particularly term insurance. One of the main features of whole life insurance is that it provides a guaranteed death benefit for the insured, ensuring that the beneficiary receives a specific amount upon the policyholder's death. This assurance of coverage is a fundamental aspect that appeals to many policyholders.

Additionally, whole life insurance policies have a cash value component that accumulates over time, allowing the policyholder to access this cash value through loans or withdrawals. This characteristic is a significant difference from term insurance, which does not build any cash value and only provides coverage for a specified period.

Another defining feature of whole life insurance is that premium payments remain consistent throughout the life of the policy. This fixed premium structure provides policyholders with predictability in their financial planning.

Considering the question, the statement regarding the initial premium being lower than for an equivalent amount of term insurance does not align with the characteristics of whole life insurance. Typically, the initial premium for whole life insurance is higher than that of term insurance due to its permanent coverage and cash value accumulation features. Thus, the assertion about the initial premium is not a feature of whole life insurance, making it the correct answer to the question.