[Nevin]

Trevor, you also have some good points in regards to cash value.

I'm not saying that your cash value will have NO value, yes it surely will, but the "guaranteed rate of return" on something like that is usually in the neighborhood of 4% annually. Oftentimes they can go higher which would lead to a larger profit for you, but most frequently they do not. In the u.s. the current inflation rate is about 3% annually, give or take a few tenths. You can see here how these numbers being so close together would yield little results in the area of accrued cash value.

Also, you saying that your life policy has an investment built in is borderline illegal here in the U.S. Life insurance can NOT be sold as an investment, as that would be considered fraud. Even the U.S. government does not recognize whole life as an investment! The agent can advise on other investments if they are so licensed, but marketing an insurance policy as said investment would get you a letter from the insurance auditor's office very quickly. That's what happened to the fellow who sold me my whole life policy over a year ago.

In the past, whole life WAS the way to go, simply because nothing else existed. After the 1980's, however, things started to change here in the U.S. when consumers found out what the costs of insurance were, and that they could buy just insurance by itself, just an investment by itself, save on both AND get more coverage.

I certainly don't know the story in NZ, and I am still learning here, but that's what I hear...