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

Term life insurance is designed to provide coverage for a specific period, typically ranging from a few years to several decades. Unlike other types of life insurance, such as whole, universal, or variable life insurance, term life policies do not build cash value over time. Instead, they focus solely on providing a death benefit to the beneficiaries if the insured passes away during the term of the policy.

The lack of cash accumulation in term life insurance is a key feature that differentiates it from permanent policies. Permanent life insurance types include a savings component that allows policyholders to accumulate cash value, which can be borrowed against or withdrawn in the future. In contrast, term life insurance has no such component; once the policy term ends, the coverage also ceases unless renewed or converted to a permanent form of insurance. This makes term life insurance a more affordable option for pure life coverage, particularly for those requiring protection for a limited timeframe or for specific financial obligations, such as a mortgage or child's education.