Some people may have concerns when their insurance companies tell them that their policies hold no cash value. This may be the case. Only whole life policies, which usually come with a higher premium, have any cash value that people can use for expenses or a retirement account. This would be over and above the death benefit that a policy will provide.
Those who are looking for the lowest premium will usually opt for a term life policy. These policies tend to have lower premiums, and they last for a given term, which will usually last 10, 20 or 30 years. There are other terms, but these are the most common. The face value of the policy only refers to the death benefit that it will provide. In other words, term insurance only pays out if the insured dies, and the payout will only be the value of the policy. There is no cash value over and above the value of the death benefit, and it cannot be accessed for any reason other than death. Therefore, a $100,000 or $500,000 term policy has absolutely no cash value.