Does Term Life Insurance Fund A Savings Plan? 
Conventional term life insurance policies essentially provide a payment on death benefit if the policy holder passes away while the policy is in effect . While it is possible an individual would structure their affairs in a way that some or all of the proceeds from their life insurance policy went to fund someone else 's savings plan , the term life policy itself is not savings plan vehicle . If a person 's desire is to have a life insurance policy that also builds cash value over time as a potential savings device then some type of permanent life insurance policy would better suit this need . 