How does Whole Life Insurance differ from Variable Life Insurance?

Whole Life Insurance is characterized by its fixed premiums and guaranteed cash value. This product is designed to provide lifelong coverage, with premiums that remain level throughout the policyholder's life. The cash value accumulates at a guaranteed minimum rate, providing a safety net for the policyholder, as this cash value can be accessed through loans or withdrawals.

This stability is an attractive feature for individuals seeking consistent payment schedules and predictable benefits over time. The guaranteed cash value grows at a predetermined rate set by the insurer, making it distinct from Variable Life Insurance, where the cash value can fluctuate based on investment performance.

In contrast, elements such as flexible premiums or variable cash value, as noted in other choices, do not apply to Whole Life Insurance, which is focused on predictability and security. Additionally, the claim that Whole Life offers no death benefit is inaccurate, as providing a death benefit is a fundamental purpose of this type of insurance. Therefore, the distinguishing features of Whole Life Insurance, particularly its fixed premiums and guaranteed cash value, are what make the correct answer accurate.