Higher Premiums
As permanent life insurance program is designed to pay out a benefit in all cases, the premiums are much higher than for term assurance, which can be regarded as pure death benefit with no investment element. Thus many people select term insurance for its low cost, and they may invest the difference in separate investments. Another commonly used tactic is to utilize the slow, steady, growth within the cash value of permanent life insurance as a conservative savings strategy to hedge against the risk of the market.
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“Wherever a man separates from the multitude, and goes his own way in this mood, there indeed is a fork in the road, though ordinary travelers may see only a gap in the paling. His solitary path across lots will turn out the higher way of the two.”
—Henry David Thoreau (1817–1862)