please read unirrational's comment above. The problem with term insurance is only about 5% of all policies ever pay out (research this for yourself) and a staggering only 2% of term insurance on the job pay out. Please don't believe insurance companies are naïve. They have the best statistics of any industry...better than professional sports, the government, anyone. Because they know their numbers they are able to offer term insurance at such low cost. I like some equities but, just like our home equities the value is imaginary. There is no contract guaranteeing me anything. All equities are at risk. Look at Enron, Leman Brothers ,Bear Sterns, etc. These were huge, multi-billion dollar companies that went out of business basically overnight and took a lot of investors "values" with them. It is perceived value, not actual. With insurance companies my permanent life insurance is a contract. They have honored those contracts without fail for well over a hundred years. Additionally, the 3% you mentioned is only the guaranteed rate. That does not take into account dividends or paid-up additions. The new, indexed, permanent insurance products tract the S&P 500 but, are not directly invested in the market (safety). I have seen interest as high as 14%. You don't lose any of your gains (unlike the stock market). And oh by the way, you can receive the benefit tax-free (no capital gains). There is really no comparison my friend.