Which type of insurance policy usually includes a cash value component?

Whole Life Insurance includes a cash value component, which distinguishes it from other types of insurance policies. This cash value accumulates over time as the policyholder pays premiums, effectively allowing the policy to build a savings element in addition to providing a death benefit.

In Whole Life Insurance, a portion of the premium payments goes towards building this cash value, which can be borrowed against or withdrawn in the future. This feature makes it a long-term financial planning tool, as it not only offers life coverage but also contributes to the policyholder's financial security through accumulated savings.

On the other hand, Term Life Insurance solely provides a death benefit without any cash value accumulation. Health Insurance is primarily focused on providing coverage for medical expenses, and it does not include any cash value aspect. Liability Insurance is designed to cover legal responsibilities to others and does not have a cash value component either. Thus, Whole Life Insurance is the correct answer as it uniquely incorporates both a death benefit and a cash accumulation feature.