Which life insurance type accumulates cash value over time?

Whole life insurance is designed to accumulate cash value over time as part of its structure. A portion of the premiums paid towards a whole life policy goes into a savings component, which builds cash value that the policyholder can borrow against or withdraw during their lifetime. This cash value grows at a guaranteed rate and is also subject to dividends, depending on the insurer's performance.

In contrast, term life insurance does not accumulate cash value; it provides coverage for a specific period and pays benefits only if the insured dies within that term. Accidental death insurance provides benefits solely in the event of death caused by an accident and does not involve any cash value accumulation. Term conversion insurance refers to the option of converting a term policy into a whole life policy but does not directly involve cash value accumulation on its own. Thus, whole life insurance is the only type listed that directly accumulates cash value over time.