Texas Life Insurance Practice Exam

Whole life insurance is a type of permanent life insurance that is designed to provide coverage for the insured's entire life, as long as the premiums are paid. This feature distinguishes it from term life insurance, which offers coverage for a specific duration or term. Whole life insurance also typically includes a cash value component that increases over time, contributing to its long-term financial benefits. Because it guarantees lifelong coverage, this choice captures the central characteristic that sets whole life insurance apart from other types of insurance policies.

The other features mentioned in the options do not apply to whole life insurance: it does have a cash value component, it is generally more expensive than term life insurance, and it can be purchased both as an individual policy or as a group policy, depending on the insurer.