Which of the following describes the cash value feature of permanent life insurance?

The cash value feature of permanent life insurance is best described as a savings component that accumulates over time. This aspect of permanent life insurance distinguishes it from term insurance, which does not build any cash value.

In permanent life insurance, a portion of the premium payments goes towards accumulating cash value in addition to providing a death benefit. This cash value grows on a tax-deferred basis, meaning the policyholder does not pay taxes on the growth of the cash value until it is withdrawn, if at all. This accumulation can be accessed while the policy is active, which provides a level of financial flexibility to the policyholder.

Thus, the nature of this feature is intrinsic to the design of permanent life insurance policies, making it an important benefit for those looking to combine life insurance protection with a form of savings or investment.