What type of life insurance policies have a "cash value" component?

Life insurance policies that include a "cash value" component are primarily whole life and universal life insurance policies. These types of policies not only provide a death benefit to the beneficiaries upon the insured's death but also accumulate cash value over time, which policyholders can access while they are alive.

Whole life insurance provides a guaranteed cash value growth at a fixed rate, and the policy remains in force for the insured's entire life as long as premiums are paid. Conversely, universal life insurance offers more flexibility in terms of premium payments and death benefits while also accumulating cash value, which can grow based on current interest rates or investment performance, depending on the specifics of the policy.

In contrast, term life insurance does not include a cash value component; it only provides coverage for a specific period. Variable life insurance policies do have cash value features, but their cash value is invested in separate accounts and can fluctuate with market performance. However, the option that specifically identifies both types of policies with a cash value advantage is whole life and universal life insurance.