What does Whole Life Insurance offer in addition to a death benefit?

Whole life insurance not only provides a death benefit to beneficiaries upon the policyholder's passing, but it also has the unique feature of building cash value over time. This cash value accumulates on a tax-deferred basis, meaning that policyholders do not pay taxes on the growth of this cash value as it increases. As the policyholder continues to pay premiums, a portion of those premiums goes towards the cash value component, which can be accessed during the life of the insured through loans or withdrawals. This aspect makes whole life insurance a valuable financial tool, as it can provide not only a safety net for loved ones in the event of the insured's death but also a source of funds that can be utilized by the policyholder while alive. The stability and predictability of both the death benefit and the cash value accumulation are key reasons why many individuals choose this type of insurance.