Which of the following statements about whole life insurance is true?

Whole life insurance is designed to provide lifelong coverage, meaning it will pay out a death benefit whenever the insured passes away, as long as the policy is in force. A key feature of whole life insurance is that it also includes a cash accumulation component. This portion of the policy allows policyholders to accumulate cash value over time, which can be borrowed against or withdrawn in certain circumstances.

This dual benefit—providing a death benefit and allowing for cash value accumulation—makes whole life insurance a popular choice for those looking for long-term financial planning and security.

The other statements do not align with the characteristics of whole life insurance, as it is not limited to term coverage nor is it without cash value accumulation. Additionally, the premiums for whole life insurance generally remain level throughout the life of the policy and do not decrease as the insured ages.