Which type of life insurance policy has no cash value accumulation?

Term life insurance is characterized by its lack of cash value accumulation. This type of policy is designed to provide coverage for a specific period, typically from one to thirty years, and pays a death benefit if the insured passes away during that term. Unlike whole, universal, or variable life insurance policies, which are structured to build cash value over time, term insurance focuses solely on providing death protection. As a result, policyholders do not accumulate savings or investment value, making this option straightforward and often more affordable than permanent policies.

Whole life, universal life, and variable life insurance all incorporate elements that contribute to cash value growth, creating a savings component as part of the policy's features. Thus, the nature of term life insurance distinctly sets it apart as the option with no cash value accumulation.