Cash value in life insurance refers to the amount of money that builds up over time within a permanent life insurance policy. It represents the portion of the policy's premiums that are invested by the insurer and accumulate over time. This way, policyholders can access this cash value through loans or withdrawals, though doing so may reduce the death benefit or result in taxes or fees. Cash value can provide policyholders with added financial flexibility and potentially even serve as a source of retirement income in some cases.