Which of the following best describes the cash value of a policy?

The cash value of a policy is best described as the savings component that grows over time in a permanent policy. In permanent life insurance, the cash value serves as a savings element that accumulates on a tax-deferred basis. As premiums are paid, a portion is allocated towards building this cash value, which can be accessed by the policyholder in various ways, such as through loans or partial withdrawals. This growth can be influenced by the policy's interest rate or investment performance depending on the type of permanent policy, like whole life or universal life.

The other options focus on different aspects of insurance policies: the amount paid for premiums over time refers to the total contributions made into the policy, the total death benefit is what the beneficiaries would receive upon the death of the insured, and the costs associated with managing the policy are related to administrative expenses and fees but do not represent the cash value itself. Thus, option B is the most accurate reflection of what cash value signifies within the context of permanent life insurance policies.