Does a term life insurance policy’s cash value build during a specific period of time?

A term life insurance policy does not build cash value at any time during the duration of the policy. Term life insurance is designed to provide death benefit coverage for a specified period, typically ranging from one to thirty years, and once that period expires, the coverage ends.

The primary focus of term life insurance is to provide financial protection in the event of the policyholder's death within the term, without any savings or investment component associated with it. This distinguishes it from permanent life insurance products, such as whole life or universal life insurance, which do accumulate cash value over time through premiums paid.

Thus, the correct understanding is that term life insurance policies do not have a cash value feature, making the statement about cash value building at any point during the term false.