Which of the following statements is true regarding a whole life policy?

In a whole life policy, the policyowner is indeed entitled to policy loans. This means that as the policy accumulates cash value over time, the policyowner can borrow against that cash value. This provision is a key feature of whole life insurance, which is designed to provide coverage for the insured's entire lifetime as long as premiums are paid. The ability to take loans is advantageous because it gives policyholders access to funds without needing to surrender the policy, although these loans will accrue interest and reduce the death benefit if not repaid.

The other options do not accurately reflect the characteristics of a whole life policy. Whole life insurance typically has level premiums, rather than adjustable premiums tied to market rates. Additionally, coverage does not end when the insured turns 65; it continues for the entire life of the insured. Lastly, the death benefit in a whole life policy remains level and does not decrease over time, which contrasts with certain other types of life insurance policies.