Yes, universal life insurance policies do have a cash value component. Unlike term life insurance policies which only provide coverage for a specific term, universal life insurance is a permanent life insurance policy that combines a death benefit with a cash value accumulation feature. A portion of the premium paid towards a universal life insurance policy is allocated towards the cash value account. Over time, this cash value grows tax-deferred based on the interest credited to it by the insurance company. The policyholder can access this cash value through policy loans or withdrawals, which can be used for various purposes such as supplementing retirement income, paying off loans, or covering unexpected expenses. However, it's important to note that withdrawing or borrowing from the cash value will reduce the death benefit and may have tax implications. It's always recommended to consult with a financial advisor or insurance specialist to fully understand the features and implications of a universal life insurance policy's cash value component.