What does term insurance typically lack that other types of life insurance may offer?

Term insurance typically lacks cash value accumulation, which is a key feature of many permanent life insurance policies. Permanent life insurance, such as whole life or universal life, includes a savings component that allows the policy to build cash value over time. This cash value can be borrowed against or withdrawn by the policyholder for various uses, such as emergencies or supplemental retirement income.

In contrast, term insurance is designed to provide pure protection for a specific period, and once the term expires, there is no residual value or cash benefit. The policyholder pays premiums solely for the death benefit, without the additional feature of accumulating cash value. This distinction is important for individuals evaluating their life insurance needs, as those seeking a savings component alongside their death benefit may prefer permanent life insurance options.