The primary purpose of Life Insurance and its cash value

2 Sundays ago, the sunday times published an article on life insurance rate of returns show a lack of understanding on life insurance by the author.

Life insurance's BASIC purpose is to CREATE CAPITAL and PROVIDE LIQUIDITY to a life transition situation that NEED money. An example of such situations are death of a key income person of a family or business. The cash value within a life insurance is to allow it to be in-force for whole of life at a level premium manner. Life insurance is not created primarily for RETURN ON CAPITAL like any other investment products.