Term life insurance is an extremely simple product as it is a bare basics offer with no complexities or frills. Also because it is easy to compare term insurance offers from different insurers, the rates are highly competitive making it easy for anybody to take a policy without bothering too much about the pricing.

Cash value insurance tries to combine insurance with a savings scheme. The problem is that it is difficult to compare offers and see which is better and whether you are losing out, unless you have a penchant for finance and figures. Now assuming you know something about finance and investment it may be better to buy a term insurance and invest the balance premium that you may have given for the cash value policy. You can invest it in the best way that you think will meet your requirements instead of tying yourself to the investment decisions of an insurance company.

To summarise, it may be advisable to buy a term insurance so that the insurance company handles only the insurance. The balance savings can be invested separately by us to give the best returns without compromising safety.

Thanks cassey282, for the award.

I thank you too for giving a well explained answer. I truly appreciate your response. You deserve due recognition for a detailed insight and very helpful information. Thank you!