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Cash value life
insurance
Cash value life will cost more than term life. Be prepared to pay much higher premiums because you aren't simply funding your life insurance, but a savings account as well.
Many cash value policies have an annual premium that will not increase from year to year. The premium amount remains the same throughout the premium-paying period. There are many universal life policies that will allow you to adjust your death benefit amounts or skip premium payments for a certain amount of time.
Because cash value life policies are confusing and vary from company to company, regulators require that cash value insurance be sold using pre-approved illustration formats. The documents can be 15 pages or more. The illustrations are divided into two sections: the guaranteed section and the projected section.
Look closely at the guaranteed death benefit and premium payment sections. If you don't agree with what is there, walk away before you sign anything.
You should make your choice very seriously,
as many cash value policies contain harsh penalties for surrendering
coverage early in the policy.