In the context of life insurance, what does "cash value" refer to?

In life insurance, "cash value" specifically refers to the savings component within a permanent life insurance policy, such as whole life or universal life insurance. This cash value accumulates over time as a portion of the premiums paid goes towards building this value. Policyholders can borrow against the cash value or, in some cases, withdraw funds from it. Importantly, the cash value is distinct from the death benefit, which is the amount paid out to beneficiaries upon the insured’s death. The option that describes the cash value accurately highlights its role as a financial resource available to the policyholder during their lifetime, which can also grow through interest or dividends depending on the policy type.