What type of life insurance provides a cash value that can be borrowed against?

Whole life insurance is designed to provide both a death benefit and a cash value component that grows over time. This cash value accumulates as the policyholder pays premiums, and it can be borrowed against, allowing the policyholder access to funds for various needs without having to cancel the policy.

The cash value aspect of whole life insurance provides a savings element, making it distinct from term life insurance, which solely offers a death benefit for a specified period without any cash value accumulation. Endowment policies also have cash values but are typically structured to pay out after a certain period, making them less flexible in terms of borrowing. Accidental death insurance, on the other hand, focuses exclusively on providing a benefit if the insured's death results from an accident and does not offer cash value at all. Thus, in the context of life insurance that allows borrowing, whole life insurance is the correct choice.