Within the cash value package there also is a term policy that pays in case you die early. Since cash value policies are long-term investments, it's important to consider how the insurance company invests these values. About 80 percent of cash values typically go into bonds, mortgages, policy loans, and cash. These debt-based returns have historically yielded about 7 percent, as you become an indirect lender through your insurance company. Yes, if you're not going to follow through and invest the money you save as a result of buying term.
Many people end up buying term and spending the difference.
Also, remember that term insurance is only to be used for a set period of time and will not continue indefinitely. If you're still healthy and own cash value insurance, carefully consider this strategy. It involves the following decisions. Remember that a cash value life insurance policy can be reduced to four basic parts. By carefully combining level term insurance with Roth IRAs, you excel in all four areas.