Which insurance type typically has a cash value that grows over time?

Whole life insurance is designed to provide permanent coverage for the insured's lifetime, as long as premiums are paid. One of the defining features of whole life insurance is its cash value component, which accumulates over time. This cash value is a portion of the premiums that is set aside and grows at a guaranteed rate, allowing policyholders to borrow against it or withdraw from it if needed.

As the cash value accumulates, it can serve as a savings or investment vehicle in addition to providing a death benefit. This is distinct from other types of insurance mentioned. For instance, term life insurance provides coverage for a specified period and does not build cash value, making it purely a death benefit product. Critical illness insurance offers a payment upon diagnosis of specified illnesses and does not accumulate cash value, while accidental death insurance pays out only in the event of death due to an accident, similarly lacking any cash value component. Hence, whole life insurance is the only option listed that provides a cash value that grows over time.