What type of life insurance has no cash or loan value associated with it?

Term life insurance is a type of life insurance that does not accumulate cash value or provide any loan features. It is designed to provide coverage for a specific period, such as 10, 20, or 30 years, and pays a death benefit to the beneficiaries if the insured individual passes away within that term. Since the primary purpose of term life insurance is to offer affordable protection for a defined period without the component of savings or investment, it does not have cash value associated with it.

In contrast, whole life insurance and universal life insurance both include cash value accumulation as part of their features, allowing policyholders to access those funds through loans or withdrawals. An endowment policy is designed to pay out a lump sum either on a specified date or upon the policyholder’s death, and it typically has a savings component similar to whole life insurance.