Which statement best describes a whole life insurance policy?

Whole life insurance is characterized as a permanent life insurance policy that not only provides a death benefit to the beneficiaries upon the insured's passing but also accumulates cash value over time. This cash value component grows at a guaranteed rate and can be accessed by the policyholder during their lifetime through loans or withdrawals, adding a savings aspect to the policy. The premiums for whole life insurance remain level throughout the life of the insured, providing predictable costs. This type of policy remains in force for the insured's entire life as long as premiums are paid, distinguishing it from term insurance, which only covers a specified period and does not build cash value. This comprehensive nature of whole life insurance—offering both protection and an investment element—makes the description in the selected answer the most accurate representation of such policies.