What typically happens to the cash value of a whole life insurance policy as the insured ages?

The cash value of a whole life insurance policy typically increases over time as the insured ages. Whole life insurance is designed to provide both a death benefit and a savings component known as cash value. The cash value accumulates gradually with premium payments made over the life of the policy, and it generally grows at a guaranteed rate set by the insurance company.

As the insured ages, the cash value increases due in part to the regular premium payments and the interest that accrues on this amount. This growth reflects the insurance company's investment strategy, where the funds are invested to generate returns that contribute to the increase in cash value.

Additionally, the increasing cash value serves to provide policyholders with an accessible resource that they can borrow against or withdraw from, giving them financial options as they age. Therefore, the correct choice highlights the cumulative nature of whole life policies, which is a fundamental characteristic of these financial products.