Life Insurance - it is a good deal? I have written about it before, and it is an interesting animal. For a young family starting out, a term policy can be bought cheaply enough - and provide coverage in case a spouse dies young. However, as you get older, the premiums become larger and larger. By then, you should have enough set aside in case of early death - and a term policy is no longer necessary.
Here, I did not use dividends to reduce premiums until about 2009, and as you can see, once I did, the slope of the dividend curve decreased and crossed the cash value line that much sooner. This chart differs from the one above in that it illustrates the guaranteed values from the State Farm Policy, whereas in the Northwestern chart, I projected cash value over time.