Not saying that at all. They were saying they invested the difference which I said was unusual. But, I contend that cash value insurance (structured right) is less expensive than term (even if you invest the difference) if you need coverage for more than 10-12 years. If you need insurance coverage for less than that time, buy Term without a doubt. I also agree with Steve that you should cancel coverage when you no longer need it (that includes Cash Value type insurance), especially Term insurance. Term insurance is just like auto insurance. Only buy what you need for as long as you need it as it has no value. As you build up savings, then you are self insuring yourself for that part. In other words, when you determine how much life insurance you need, you start with answering the question "How much money do you want to have in the bank for your family when you die?" Let's say the answer is $1 million. If you have $100,000 in savings, then you need to insure the $900,000 shortfall. Next year, if your savings is now $200,000, and you still need to have $1 million, you only need to insure $800,000. So, if you are on a regular plan of savings, then some part of your insurance program should be Term insurance and that is the portion you would reduce as your savings grows. I'm making this process way more simple than it really is. A good insurance agent will walk you down this path.
One problem with these forums is that we are addressing one or two issues in their lives. We can't possibly do the proper planning that needs to be done to solve all the problems, BUT at least it is a start and for the most part, people get great advice and opinions. Hopefully it is enough to get people on track. Unfortunately, some people will never do what it takes to get their finances in shape.
In the end, everyone needs to do what they think is right for them. I just wanted to put a different view on life insurance out there that is obviously a minority view. I obtained my Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC) designations early in my career. That doesn't make me a genius and always right, but I do have a lot more experience in the insurance industry than most of the people posting comments. So, it makesme have at least a credible opinion I hope.
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