Buy term and invest the difference has long been the mantra of investment salesman(women) and Primerica built an entire company around the idea. The premise behind the concept has always been that one could achieve a greater return with “investments” vs. traditional whole life insurance and it’s cash surrender value build up.
For the investment industry, this was a way to take premium dollars away from the life insurance industry and redirect it into investment accounts. For Primerica, this was a way to replace current life insurance contracts with term insurance juxtapose on the cost today of achieving a given death benefit.
Other financial talking heads have jumped on the buy term and invest the different bandwagon, mostly because they know it draws a lot of attention from life insurance agents who want to argue the point—and few things draw more attention to you than a fight.
As insurance brokers/agents, one would anticipate that we’d very much dislike the notion of buy term and invest the difference, but one would be wrong to make that assumption.
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