Life insurance is designed to provide financial protection for those dependent upon the insured person in the event of the insured person's death. While this is the primary purpose of life insurance, there may be other advantages, including the potential to accumulate a cash value.
Term insurance offers a death benefit only.
Whole life , universal life and variable life are versions of cash value insurance which combine a death benefit and cash value, which is generally accessible through loans against your policy. Whole Life Insurance Also called permanent life insurance, this coverage typically pays a fixed benefit upon the death of the insured person. It also allows you to build up cash value which you can borrow against. Loans that are outstanding when the insured dies are deducted from the death benefit. If you're looking for a way to combine both life insurance and wealth accumulation features under one policy, universal life may provide the flexibility you need.