Abstract: Using the basic assumption that a cash value life insurance policy can be equated with a program combining term insurance and a separate investment fund, a methodology is provided for analyzing the investment performance of cash value contracts. The suggested model involves the comparisons of savings "accumulations" in the two programs. A computer program has been written which allows the user to select values for a number of relevant variables, including years of analysis, age, return expected on outside investment, and tax bracket. It is suggested that the model and program would be useful in classroom settings as well as for advising consumers. In any course on life insurance, one must come to grips with the question of the relative merits of cash value and term policies. There are a number of routes which can be taken in this area. Some teachers may choose to recommend one or the other of these products on a blanket basis. Others may state that it depends upon the individual situation and that no general guidelines can be given. A position taken by many is that one should buy cash value insurance unless a strong case can be made for the purchase of term insurance in a particular instance. It is this writer's observation that this is the philosophy followed by the majority of people working in the insurance industry. The material in this article is based upon the contrary position that one should buy term insurance unless a good case can be made for the purchase of cash value insurance. The purpose of this article is not to delineate the reasons for that position. Suffice to say at this point that this opinion is based upon the conclusion that the basic purpose of life insurance is to provide protection against premature death and that term insurance provides this protection during the period when it is needed. Having accepted the above premise, it remains for the instructor to deal with the question "When should cash value insurance be purchased?" One of a number of instances where it should be used is when the buyer wishes to combine a savings program with his life insurance program. In deciding whether he wishes to do so (given that he wishes a savings program of some type) the buyer ought certainly to be interested in the Michael L. Murray, Ph.D., is an Associate Professor in the University of Iowa. This paper was submitted in April, 1974.