What feature is common to both variable and universal life insurance?

The aspect that is shared by both variable and universal life insurance is the accumulation of cash value. In these types of insurance policies, a portion of the premiums paid goes towards building a cash value component, which can grow over time. This cash value is often invested, allowing it to potentially increase based on market performance in the case of variable life insurance or through a predetermined interest rate in the case of universal life insurance.

Having this cash value component provides policyholders with certain advantages. They can borrow against it, withdraw funds, or use it to pay premium costs, providing greater flexibility compared to term life insurance, which does not accumulate cash value. This feature plays a crucial role in the overall design and appeal of both variable and universal life insurance products, allowing policyholders to have ongoing financial benefits in addition to the death benefit provided by the policy.