Buy Term And Invest The Difference
Buying term and investing the difference is a concept involving term life insurance and investment strategies that allows individuals to eventually "self Insure" and provides an alternative to permanent life insurance. Generally speaking term insurance premiums are considerably less expensive in the short term than permanent life insurance for an individual for the same benefit amount. Permanent programs are more expensive because they force the policy owner to "Self Insure" by combining some form of cash accumulation with the insurance program as a single package. Consumers making use of the "buy term and invest the difference" concept separate their investments from their insurance by setting aside money every month equal to the premium that a permanent plan would require, then use a portion of this money for the term premium and place the rest in a tax-deferred investment vehicle.
Read more about Buy Term And Invest The Difference: Cases For and Against Implementing The Strategy
Famous quotes containing the words buy, term, invest and/or difference:
“Were I to buy this life of pleasure and this only chance at happiness with a few little dangers, where would be the harm? And wouldn’t it still be fortunate to find a weak excuse to give her proof of my love?”
—Stendhal [Marie Henri Beyle] (1783–1842)
“Narcissist: psychoanalytic term for the person who loves himself more than his analyst; considered to be the manifestation of a dire mental disease whose successful treatment depends on the patient learning to love the analyst more and himself less.”
—Thomas Szasz (b. 1920)
“His mind was strong and clear, his will was unwavering, his convictions were uncompromising, his imagination was powerful enough to invest all plans of national policy with a poetic charm.”
—Woodrow Wilson (1856–1924)
“No burst of nuclear phenomenon
That put an end to what was going on
Could make much difference to the dead and gone.”
—Robert Frost (1874–1963)