[mn-bush-man]

PL - I'm 27, have two kids (one more in 2 1/2 months), and asked the same types of questions a couple of years ago. I was told that term life insurance is the way to go because (a), it's dirt cheap right now, and (b) the other policies are essentially term with extra bells and whistles attached. Essentially, the difference in price between term and the others doesn't justify getting the extras - in other words, pay the lower premium and take the difference and invest it yourself (i.e. - you will likely get a better return doing your own investing than allowing your insurance company to do it). I've got a basic 10 year term policy, as does my wife (with a policy amount that is half of what mine is), and their costs (considering their benefit should they become needed) are insignificant. With a home, and possibly kids soon, you really should get some!! Hope this helps a bit! Good luck!

[Eagle Eye]

Essentially, the difference in price between term and the others doesn't justify getting the extras - in other words, pay the lower premium and take the difference and invest it yourself (i.e. - you will likely get a better return doing your own investing than allowing your insurance company to do it).

Sometimes this is true. Most people don't discipline themselves to invest the difference.

Some companies have variable products that are VERY competitive with the term/invest yourself route, in that the minimum premium is only slightly above the term price (some even less) and then offer mutual funds investments that are shielded from taxes. Some of these policies will allow significant amounts of premium to be droped in and will adjust the face amount accordingly. This allows a person to have significant funds that are grwoing at market rates but are not subject to income tax! You access these funds via policy loan at 1% or so, and pay back at your leisure, if at all. IRAs and 401k's don't do that.