Which insurance product typically accumulates cash value over time?

Whole life insurance is an insurance product that accumulates cash value over time. This type of policy provides both a death benefit and a savings component. The cash value grows gradually on a tax-deferred basis, meaning policyholders can take loans against it or withdraw from the cash value during their lifetime.

In contrast, term life insurance is designed to provide coverage for a specific term without any cash value accumulation. Health insurance primarily focuses on covering medical expenses and does not generate cash value. Liability insurance protects against legal liabilities but also does not build cash value, as it is meant solely to cover damages and legal costs. Therefore, whole life insurance stands out as the option that combines life coverage with a savings element, allowing for financial growth over time.