It is important to understand the purpose of purchasing the Life insurance in the first place. Once you can identify the purchase, it is very easy to determine whether you need to buy Term or Permanent Policy.

Clearly, there are a lot of advantages of both types of policy, but, the permanent policy is the one I prefer, because, IT IS PERMANENT. My family will get some benefit eventually.

Secondly, there is an element of LONG TERM savings involved in this instrument. What this means is that I can save towards the future and let the investments earn returns of the general stock market tax free!!

Over a long period of time, this could grow into something meaningful in terms of the CASH VALUE. I would advise Permanent Policy holders to over-fund their policies subject to their own financial limitations and IRS limitations.