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

Whole life insurance is designed to provide coverage for the entire lifetime of the insured, and as part of this structure, premiums are set at a level amount when the policy is purchased. This means that the policyholder will pay the same premium throughout the life of the policy, regardless of changes in the insured's age or health status. This characteristic provides predictability and makes it easier for policyholders to budget for their insurance costs over time.

The level premium aspect is a key feature of whole life insurance, ensuring that policyholders are not subjected to fluctuating rates, which can occur in other types of insurance like term life or variable life products. By maintaining a consistent premium, whole life insurance also helps to establish a steady build-up of cash value within the policy, which can be accessed later by the policyholder.

Other options present aspects associated with different types of life insurance or misunderstandings of how whole life insurance functions. For example, term life policies typically offer lower premiums but have coverage only for a specified period. Fluctuating premiums would be more aligned with universal or variable life insurance, where investment performance can impact costs. As for premiums being paid only until the insured dies, whole life premiums are generally paid for the lifetime of the insured, or at