Term and Invest The Difference

Every once-in-a-while I come upon something that I just can't hold back on sharing. I hope you find the following of great educational value.

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When talking or blogging about the wisdom of owning life insurance, no one disputes that it is a vital and extremely important purchase decision in ones life. However, should the purchase be universal, whole or term life insurance. Financial professionals passionately debated this topic daily.

Mostly I just observe and wonder at the incredible misconceptions and heated arguments that ensue. Today however, I stumbled upon a post that I found most interesting.

The topic of the post is, "Term and Invest the Difference." The concept is simple, buy term insurance and use the money you save over purchasing whole life or universal life insurance as your deposits into some other type of investment plan (like your 401K, money market accounts, annuities, mutual funds, etc.).

This concept is at the center of almost all debates between financial service professionals and those within the industry who specialize in life insurance planning - like me.

There are multiple reasons why the concept "Term and Invest the Difference" does not work for many people. I found this article (link posted below) and attached comments fascinating. I am re-posting it on my blog for educational purposes.

If you have ever considered owning a whole life or universal life plan, please give me a call. I would be happy to discuss your options and the many potential benefits.

http://www.walletpop.com/blog/2008/09/11/tip-8-buying-term-insurance-and-investing-the-difference-may-b/