The Great Debate
Term vs Whole Life Insurance
Does "Buy Term and Invest the Difference" actually work? See the math behind why financial experts recommend avoiding whole life insurance.
Your Policy Details
For the "Invest the difference" strategy.
Monthly Difference to Invest
$420/mo
Wealth Created After 20 Years
$93,916 More
By buying Term and investing the difference, you end up with $93,916 more net worth than a Whole Life policy.
20-Year Comparison Breakdown
BTID Strategy
Total Spent on Insurance
$7,200
Total Principal Invested
$100,800
Final Investment Value
$218,789
Whole Life Policy
Total Premiums Paid
$108,000
Estimated Cash Value
$124,873
Whole life insurance is heavily front-loaded with fees and commissions for the agent. While they guarantee a return, market index funds historically outperform these guaranteed rates by a massive margin over 20+ years.