Which of the following is a characteristic of a whole life insurance policy?

A whole life insurance policy is distinguished by its cash value accumulation feature. This means that a portion of the premium payments made by the policyholder goes towards building up a cash value, which grows on a tax-deferred basis. This cash value can be borrowed against or withdrawn by the policyholder, providing a living benefit that can support future financial needs. Additionally, as long as premiums are paid, whole life insurance remains in force for the insured's entire life, thereby guaranteeing a death benefit to beneficiaries upon the policyholder's passing.

In contrast, flexible premiums typically characterize universal life insurance, where policyholders can adjust their premium payments. The option for term coverage is linked to term life insurance, which provides coverage for a specified period rather than for the policyholder’s entire life. Minimal death benefits are not a feature of whole life policies, which are designed to provide a solid and robust death benefit meant to protect beneficiaries adequately.