Buy Term Invest The Difference Apr 2026

: Calculate how much your family would need for income replacement and debt (often 10–12x your annual income).

: Costs more because it provides lifelong coverage and includes a "cash value" component that grows at a modest, guaranteed rate.

: Find out what a whole life policy with the same death benefit would cost. For example, a $500k policy for a 30-year-old might cost $21/month for term vs. $440/month for whole life—a $419/month difference. buy term invest the difference

: Compare prices for a level-premium term policy from providers like Policygenius or SelectQuote .

The goal is to provide death benefit protection while your family needs it (e.g., while raising kids or paying a mortgage) while building a "side fund" that ideally grows large enough to let you once the term expires. Core Comparison : Calculate how much your family would need

: Splits these functions. You buy a 10, 20, or 30-year term policy for pure protection and put the "difference" (which can be 10–20x the cost of term) into higher-yield investments like index funds or ETFs. How to Implement BTID

: The strategy only works if you consistently invest the savings; spending it instead leaves you with no long-term wealth. For example, a $500k policy for a 30-year-old

: Set up an automatic transfer of that "difference" into a brokerage account or tax-advantaged retirement account (like a Roth IRA or 401k).