When does a whole life insurance policy pay its face amount?

A whole life insurance policy is designed to provide coverage for the lifetime of the insured, ensuring that a death benefit is paid out whether the insured passes away before reaching a certain age or lives to an advanced age. The policy guarantees a death benefit, which is the face amount, will be delivered upon the death of the insured. Additionally, if the insured reaches the age of 100, the policy matures, and the face amount is paid to the policyholder or the beneficiary. This dual condition—paying out upon death or at maturity—illustrates the unique characteristic of whole life insurance, distinguishing it from term policies or other life insurance types. Therefore, this option accurately reflects the fundamental purpose and function of whole life policies.