Why might someone choose a whole life insurance policy over term insurance?

Choosing a whole life insurance policy over term insurance often centers around the benefits of lifelong coverage and the accumulation of cash value. Whole life insurance is designed to provide coverage for the insured's entire life as long as premiums are paid, making it an attractive option for individuals seeking long-term financial security. This can be particularly appealing for those who want to ensure that their beneficiaries receive a death benefit regardless of when the policyholder passes away.

Additionally, whole life policies build cash value over time, which serves as a financial asset that the policyholder can borrow against or withdraw from, providing added financial flexibility and potential for growth. This cash value growth is typically based on a guaranteed interest rate set by the insurance company and may also include dividends, depending on the type of whole life policy.

In contrast, term insurance provides coverage for a specified period and does not accumulate cash value, making whole life insurance more suitable for those looking for lifetime protection along with a savings component. Therefore, the option highlighting lifelong coverage and cash value accumulation aptly captures the primary reasons a consumer might prefer a whole life policy.