What characterizes 'whole life insurance' in terms of underwriting?

Whole life insurance is characterized as a permanent policy that offers fixed premiums and provides lifetime coverage. This means that once the policy is issued, the premium amount remains consistent throughout the life of the policyholder. The guarantees associated with whole life insurance include not only lifelong coverage but also a cash value component that grows over time, which can be borrowed against or withdrawn under certain conditions.

In underwriting for whole life insurance, insurers assess the applicant's risk profile, including health and lifestyle factors, to determine eligibility and premium amounts. The fixed premium element provides predictability for policyholders, making whole life insurance an attractive option for long-term financial planning and security.

Other types of policies, such as term life or those with variable premiums, do not offer the same guarantees and characteristics as whole life, thus distinguishing it within the broader spectrum of life insurance products.