Term Life Insurance Value
An added benefit to buying a whole life insurance policy is that it will accumulate cash value as the policy matures. Premiums from permanent insurance policies are invested in one or more investments which accumulates interest throughout the policy. At the time of death, the beneficiary will receive not only the death benefit but also any dividends accrued during the course of the policy.
Additionally, you may borrow against a whole life policy or you may make withdrawals from the cash value of the policy. This will reduce the eventual benefit of the policy but it offers the policy holder the option of using part of the benefit for supplemental income or a means to pay off debt. Term life insurance policies do not accrue interest for the policy holder nor do they earn cash value. They pay only the agreed benefit upon death and there is not option to direct the investment of the premiums.