A whole life policy is a type of permanent life insurance that provides coverage for the insured's entire life, as long as premiums are paid. It combines a death benefit with a cash value component that grows over time. This cash value can be borrowed against or withdrawn, offering financial flexibility. Premiums for a whole life policy are typically higher than those for term life insurance, but they remain level throughout the policyholder's life. The policy also accumulates cash value at a guaranteed rate, making it a long-term financial planning tool for individuals seeking both insurance and savings benefits.