Which policy typically does not accumulate cash value and is considered pure insurance?

Term life insurance is designed specifically to provide coverage for a specific period, such as 10, 20, or 30 years, and it serves the primary purpose of providing a death benefit to the beneficiaries if the insured passes away during that term. Since term policies do not have a savings or investment component, they do not accumulate cash value over time, making them a pure form of insurance.

This lack of cash value is a distinguishing feature of term life insurance, differentiating it from whole life, universal life, and variable life policies which all include an investment component that builds cash value over time. While those other types of policies provide lifelong coverage and a savings component, term life focuses solely on protecting the insured for a designated term without the additional benefits of cash accumulation.