Which Life Insurance Has Cash Value? 
All the answers above are valid . Term insurance Never has `` cash value '' , but you may be able to buy a `` Return of Premium '' rider with a Term policy that will return most of the premium paid at the termination of the policy . And that without interest . Universal policies may accumulate some cash value after the first several years , but unless the amount of premium is increased to keep pace with the increasing `` cost of insurance '' that cash value will be consumed and the policy lapse with no value at all . Whole Life policies have a guaranteed minimum interest paid into a cash value of the policy and this interest is compounded and grows tax-free . You have access to the cash value also tax-free . You may also use the cash value as a future income source for retirement . The best Cash Value policies are the Participating Whole Life policies with Mutual companies . These are eligible for Dividends on top of the guaranteed interest and will grow the cash value much faster . 