What is the primary feature of Ordinary Whole Life insurance?

The primary feature of Ordinary Whole Life insurance is the accumulation of cash value, which is guaranteed to grow over time and typically is available to the policyholder around age 100. This means that as premiums are paid, a portion of that money goes into a savings component that builds cash value. This feature allows policyholders to borrow against the cash value or withdraw it, providing both a death benefit and a living benefit.

The design of Ordinary Whole Life is rooted in the concept of providing lifelong coverage, maintaining a level premium throughout the policyholder's life, and continuing to build value that can be accessed if needed. This cash value grows on a tax-deferred basis, making it an attractive option for many individuals seeking both insurance protection and a savings component.

In contrast, other options like coverage only until age 65 or reduced coverage after age 100 do not reflect the structure of Ordinary Whole Life policies. While high premium payments can be associated with whole life policies, they vary based on the insured's age, health, and the specific policy features chosen. Therefore, the focus on cumulative cash value until age 100 distinctly illustrates the core feature of Ordinary Whole Life insurance.