What is the main characteristic of whole life insurance?

Whole life insurance is designed to provide coverage for the entire life of the insured, as long as premiums are paid. This type of insurance guarantees that a death benefit will be paid to the beneficiaries upon the insured's death, regardless of when that occurs within the insured’s lifetime.

Additionally, whole life insurance typically includes a savings component, which accumulates cash value over time. This cash value grows at a guaranteed rate and can be borrowed against or used to pay premiums. The guarantee of lifetime coverage is a distinguishing feature of whole life insurance, as opposed to term life insurance, which only covers the insured for a specified period.

The other options are characterized differently: limited-time coverage is indicative of term life insurance; variable premiums are often associated with universal life policies or variable life policies, which fluctuate based on investment performance; and term-length contracts do not apply to whole life insurance at all, as they are specifically for term policies.