Disclaimer 2: Once again, life insurance is very complicated and requires some research. Everyone has different circumstances and needs, so instead of simply taking my opinion and running with it, check out some of these less biased, more thoroughly researched takes on the term life v. cash value debate. Find them here, here and here.

Now, if I've still got you, I plan to explain why I made those bold assertions above. But first, let me just make sure we're on the same page with our definitions of term and perm life insurance.

Term life: Term policies cover you for the duration of the term period - one year, thirty years, until you turn 65, etc. It pays a death benefit when you kick it.

Permanent/cash value: Permanent polices are often referred to as "cash value" polices because they usually include a death benefit and some type of long-term, tax-advantaged savings plan.

So term life pays a death benefit. That's it. It's simple, and that's one of the attractive things about it. Cash value plans pay a death benefit, too, but they also have a savings component. So if, and this is the Big If, you hang on to your cash value life insurance policy long enough, the amount you earn with the savings account will balance or perhaps exceed the out the amount you pay in premiums.

The thing to keep in mind, though, is that cash value policies are more expensive. So once again, cash value/permanent policies are probably not a worthwhile short-term investment, because it will take some time before the savings part accrues enough cash to counter the more expensive premium.

Term life partisans say "buy term and invest the difference." The "difference" refers to the amount extra you would have to pay for a cash value/permanent life policy. That extra amount, they say, can put to use elsewhere, such as into a Roth IRA or 401k, where it will offer a better rate of return than in a cash value savings account.

Have I thoroughly confused you yet?

Disclaimer 3: Unfortunately, life insurance is still more complicated than I've shown here. We haven't even gotten into cost indices and the various types of permanent life insurance (variable, universal, whole life).

As it's only Sept.7, and Life Insurance Awareness Month is just getting going, I have plenty of time to confuse you even further. Stay tuned.

I'll end this entry with a link to a very helpful little site that's operated by the National Association of Insurance Commissioners. It is called InsureU and it offers insurance advice based on your life stage.