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:
“Superfluous wealth can buy superfluities only. Money is not required to buy one necessary of the soul.”
—Henry David Thoreau (1817–1862)
“Orlando. Who stays it still withal?
Rosalind. With lawyers in the vacation; for they sleep
between term and term, and then they perceive not how Time
moves.”
—William Shakespeare (1564–1616)
“The true thrift is always to spend on the higher plane; to invest and invest, with keener avarice, that he may spend in spiritual creation, and not in augmenting animal existence. Nor is the man enriched, in repeating the old experiments of animal sensation; nor unless through new powers and ascending pleasures he knows himself by the actual experience of higher good to be already on the way to the highest.”
—Ralph Waldo Emerson (1803–1882)
“I find it a great and fatal difference whether I court the Muse, or the Muse courts me. That is the ugly disparity between age and youth.”
—Ralph Waldo Emerson (1803–1882)