What is typically the feature that distinguishes whole life insurance from term life insurance?

Whole life insurance is distinguished from term life insurance primarily by its cash value accumulation feature. Whole life policies are designed to provide coverage for the policyholder's entire life, as long as premiums are paid. A key characteristic of these policies is that they accumulate cash value over time, which policyholders can potentially borrow against or withdraw from in the future.

In contrast, term life insurance offers coverage for a specified period, and if the insured passes away during that term, the designated beneficiaries receive the death benefit. However, unlike whole life insurance, term policies do not accumulate cash value; once the term expires, the coverage ends without any return of premiums or cash value.

The coverage period can vary between these two types of insurance, as whole life offers lifelong protection while term life is limited. Premium payment methods might differ, but they are not exclusive to either type of policy in the same way cash value is. Death benefit amounts can vary widely in both types of policies, but this aspect does not uniquely define them. Therefore, the accumulation of cash value is the defining feature that sets whole life insurance apart from term life insurance.