YOUTUBE People say, “Buy Term and Invest the Difference.” But, what does that mean? AdminMarch 16, 2024040 views IS LIFESTYLE BANKING FOR YOU? ???? Take the quiz and get the right solution for your financial needs. ➡️ https://bit.ly/Lifestyle_Banking — What does it mean when people say “buy term and invest the difference?” People believe whole life is an “expensive product” and term insurance is cheap. Therefore, when you buy term insurance, with the money you save, from not buying a whole life policy, you should invest it in other avenues (stocks, real estate, etc) to make more money. Here’s what’s wrong with this statement. You are comparing two very different products. Term insurance insures you for a specific period of time and only provides you with a death benefit. However, whole life insurance insures you for your whole life and has a saving mechanism built into your policy. It allows you to earn a guaranteed compounded interest rate -tax-deferred and the growth in the policy is tax-free (that you can access at any time without restrictions) in addition to providing a death benefit. Scenario #1- You buy term insurance and invest your money in stocks. Let’s say that year you earned an average 15%. Great, nice return. So you either reinvest or cash out. Scenario #2- You buy whole life insurance, get a loan from your policy and invest that money. Let’s say that year you earned an average 15%. Great, nice return. But, guess what? In your policy, you’re earning a guaranteed 4% compounded interest rate too. DOUBLE THE POINTS. You’ve earned 15% on your investment and have 4% compound interest from the policy. Now, with that money, you can either reinvest it or cash out. So, which avenue works best for you? _______________________________________ DISCLAIMER Wealth Nation makes content available as a service to its customers and other visitors, to be used for informational purposes only. While our best intentions are to provide accurate and timely information, you should always consult with retirement, tax, and legal professionals prior to taking any action. source