re: Over Funding Life Insurance vs. Roth IRA

Correct. Roth principal is tax and penalty free. Monies converted from a traditional IRA to a Roth AND aged over 5 years are penalty free. Any earning on Roth principal are taxed and assessed a penalty unless owner is over 59 1/2 or a qualifying withdrawal. I am not sure you can replace principal that is withdrawn early from a Roth.

Funds in most cash value policy can be ETF to a checking account in less than 24 hours. If taken as a loan, these funds can be replaced. If taken as a surrender, limitations on replacements will apply from company to company.