Which type of insurance guarantees a cash value that grows over time?

Universal life insurance is a type of permanent life insurance that not only provides a death benefit but also has a cash value component that grows over time. The cash value accumulates based on a portion of the premiums paid, along with interest or investment returns, depending on the policy specifics. This growth is generally tax-deferred, and policyholders can borrow against the cash value or even withdraw funds if needed, providing flexibility and financial options over the life of the policy.

In contrast, term life insurance is strictly a temporary policy that offers coverage for a specific term (like 10, 20, or 30 years) and does not build any cash value. Decreasing term insurance also lacks a cash value, as it provides a death benefit that decreases over the term of the policy, typically in line with a mortgage or loan. Accidental death insurance focuses purely on covering death due to accidental causes and similarly does not accumulate cash value. Thus, universal life insurance stands out for its ability to offer both a death benefit and a growing cash value.