What element of permanent life insurance is primarily aimed at building funds for the policyholder?

The savings element of permanent life insurance, often referred to as the cash value component, is specifically designed to build funds for the policyholder over time. As premiums are paid, a portion of that money contributes to the cash value, which can grow through interest or investment returns, depending on the type of policy. This accumulation of funds can be utilized by the policyholder during their lifetime, either through withdrawals, loans, or as a means of paying premiums.

In contrast, the death benefit primarily serves the purpose of providing financial protection to beneficiaries upon the insured's death, rather than building funds for the policyholder. The beneficiary designation is relevant for indicating who will receive the death benefit but does not contribute to the policyholder’s savings. Insurance premiums are the payments made for the policy but they do not inherently represent a savings mechanism; rather, they primarily facilitate coverage and, in part, the accumulation of cash value over time.