In which type of insurance is cash value generally accumulated?

Cash value is typically associated with permanent life insurance policies. These products have a savings component in addition to providing a death benefit. As premiums are paid, a portion of the money goes into a cash value account, which can grow over time, generally on a tax-deferred basis. Policyholders can borrow against this cash value or use it to pay premiums, enhancing the policy's flexibility and utility over its life span.

In contrast, term life insurance does not accumulate cash value; it solely provides coverage for a specified term. Universal life insurance is actually a form of permanent insurance that incorporates flexible premiums and an adjustable death benefit but still falls under the broader category of permanent life insurance. Accidental death insurance specifically pays benefits only in cases of death due to accident, with no cash value accumulation. Hence, the correct categorization of insurance that accumulates cash value is permanent life insurance.