What is a common limitation of ordinary whole life insurance?

A common limitation of ordinary whole life insurance is that it does not have a flexible payment structure when it comes to premiums. While this type of insurance provides a guaranteed death benefit and includes a savings component, it typically requires fixed premium payments that do not vary.

This means that policyholders cannot adjust their premium payments based on their financial situation or cash flow needs. Unlike some other types of insurance or financial products that may offer more flexibility, whole life insurance maintains a stable and predictable premium requirement over the life of the policy, which can be a constraint for some policyholders looking for adaptability in their financial planning.

The other choices highlight features that do not pertain to limitations. For example, ordinary whole life insurance is known for its stable costs over time, providing a predictable investment that can be advantageous for policyholders. Additionally, it does have a savings component, as part of the premium payments build cash value within the policy, which can be accessed through loans or withdrawals. Finally, the investment options in whole life insurance are typically limited to those designated by the insurance company rather than being unlimited, reinforcing the idea that the policy is more rigid in terms of contributions and investment growth compared to other financial instruments.