What type of insurance policy pays a benefit upon the insured's death, regardless of when that occurs?

Whole life insurance is designed to provide a death benefit to the beneficiaries of the insured upon their death, regardless of when that occurs, as long as the policy is in force. This type of policy offers lifetime coverage, meaning the insured is guaranteed a payout at death, whether it happens shortly after the policy is purchased or many years later.

In addition to the death benefit, whole life insurance typically includes a cash value component that accumulates over time, which policyholders can borrow against or withdraw from, adding to the policy's benefits. This certainty regarding the death benefit distinguishes whole life insurance from term policies, which only pay out if the insured dies within a specified term.

Understanding the characteristics of whole life insurance helps clarify why it is chosen for individuals seeking lifelong protection and a guaranteed benefit for their beneficiaries, effectively providing peace of mind in financial planning.