Which category of life insurance typically does NOT accumulate cash value?

Term life insurance is designed primarily to provide a death benefit for a specific period, typically ranging from one to thirty years. This type of insurance is often more affordable compared to permanent life insurance products and is often utilized by individuals seeking coverage during their working years when financial obligations are high.

One of the defining characteristics of term life insurance is that it does not accumulate cash value. Cash value is a feature associated with permanent life insurance policies, such as whole life and universal life, where a portion of the premium goes into a cash accumulation account that grows over time. This cash value can be accessed by the policyholder through loans or withdrawals, but with term life, since it is meant for temporary coverage, no cash value is built up.

In contrast, whole life, universal life, and variable life insurance all incorporate a savings or investment element that allows for the accumulation of cash value, which the policyholder can utilize while still maintaining the death benefit aspect of these policies.