I know other folks active on HN actually work in the insurance industry, and hopefully they'll jump in. But there are different types of life insurance. For most HN readers term life insurance (pay $100 a year for 10 years for $150K in death benefits, and then the policy ends) makes the most sense. There's no "cash out" at the end...

There are other types tied to investment vehicles that go by names like universal and variable life insurance. Those can have certain tax advantages and can let you build that "cash value" you mentioned.

I assume that your rates go up as you age and get more likely to die. In your 20's it's only covering improbably illnesses and events like car accidents. But nobody's going to extend those same rates to you once you're 85 and already had two heart attacks.