Which type of insurance typically has cash value accumulation?

Whole life insurance is specifically designed to build cash value over time, which is a fundamental characteristic that distinguishes it from other types of insurance. This cash value accumulates on a tax-deferred basis and can be accessed by the policyholder during their lifetime through loans or withdrawals, providing financial flexibility.

The policy's premiums are typically higher than those of term life insurance, which does not have a cash value component and only provides a death benefit if the insured passes away during the term of coverage. Health insurance primarily covers medical expenses and does not accumulate cash value, and auto insurance is designed to cover vehicle-related damages and liabilities without any cash value accumulation feature. Hence, whole life insurance stands out because of its dual purpose of providing life insurance coverage alongside a savings component.