Which type of life insurance typically accumulates cash value that can be accessed by the policyholder?

Whole life insurance is a form of permanent life insurance that offers not only a death benefit but also accumulates cash value over time. The cash value grows at a guaranteed rate set by the insurer and can be borrowed against or withdrawn by the policyholder, providing a financial resource during their lifetime. This dual benefit of life coverage and cash accumulation distinguishes whole life insurance from other types.

Term life insurance, in contrast, is strictly a protection product designed to provide a death benefit without any cash value component. Variable life insurance does also accumulate cash value, but the growth is tied to the performance of investment options chosen by the policyholder, leading to potential fluctuations in cash value. Group life insurance typically provides coverage for a group of individuals, such as employees of a company, and does not offer an accumulation of cash value. Hence, whole life insurance is the correct answer, as it specifically includes the feature of cash value accumulation that can be accessed by the policyholder.