Which life insurance type typically does not have a cash value component?

Term life insurance is designed primarily to provide a death benefit to beneficiaries if the insured passes away during the policy term. This type of policy is generally straightforward and does not accumulate any cash value over time. The premiums paid for a term life policy only cover the cost of the death benefit, meaning that once the term expires, there is no residual cash value that the policyholder can access or borrow against.

In contrast, whole life, universal life, and variable life insurance policies all incorporate a cash value component that grows over time, allowing policyholders to borrow against the cash value or even access it upon cancellation of the policy. This makes term life a more cost-effective option for those focused on obtaining pure life insurance protection without the investment or savings component.