What is a key feature of a Whole Life Insurance policy concerning cash value?

A key feature of a Whole Life Insurance policy is that the cash value increases over time. Whole Life Insurance is designed to provide coverage for the lifetime of the insured, and part of the premium payments contributes to building a cash value within the policy. This cash value grows at a guaranteed rate determined by the insurer, enabling policyholders to accumulate savings that they can later withdraw or borrow against if needed.

This growth of cash value is an appealing aspect for many policyholders, as it not only provides a death benefit but also serves as a financial resource that can be accessed during the policyholder's lifetime. As the policy ages, the cash value typically becomes a significant asset, further enhancing the value of whole life insurance beyond just the death benefit.