What are "policies with cash value" in insurance terminology?

In insurance terminology, "policies with cash value" refer to policies that build equity over time and can be used by the policyholder. These types of policies, often found in whole life or universal life insurance, not only provide a death benefit but also accumulate cash value which can be accessed during the policyholder's lifetime.

The cash value grows at a set rate and can be borrowed against, withdrawn, or even used to pay premiums. This feature is particularly beneficial for policyholders who may want to leverage their insurance for emergencies, financial planning, or other investment opportunities. Therefore, identifying policies that provide this cash value component is crucial for understanding how they can serve dual purposes – providing insurance protection as well as a savings or investment component. This sets them apart from term insurance policies, which do not accumulate cash value and solely offer death benefits for a specific term.