What is an advantage of whole life insurance?

Whole life insurance is designed to provide both a death benefit and a cash value component that accumulates over time. This accumulation of cash value represents a significant advantage, as it allows policyholders to access savings that grow on a tax-deferred basis. The cash value can be borrowed against or withdrawn, providing the policyholder with financial flexibility.

In contrast, lower premiums are typically associated with term life insurance rather than whole life, making it less advantageous for long-term coverage. The idea of coverage ceasing after a certain term applies specifically to term policies and does not relate to whole life insurance, where coverage is lifelong as long as premiums are paid. Lastly, while some whole life policies may not require a medical exam, this isn't universally true, and such an attribute does not inherently distinguish whole life policies.

Therefore, the primary strength of whole life insurance is its ability to accumulate cash value while simultaneously providing the necessary death benefits, making option B the correct and most significant advantage.