You’ve probably heard it before: “Buy term and invest the difference.” It’s a popular phrase tossed around in financial circles—especially by those who don’t believe in permanent life insurance like Indexed Universal Life (IUL) or Whole Life policies.
And here’s the truth: sometimes, term life insurance is the best option.
But let’s not turn a solid strategy into a blanket solution. As an independent insurance broker, I’m here to break this down with no fluff and no one-size-fits-all bias—just real talk.
✅ When Buy Term and Invest the Difference Works
If you’re young, healthy, on a tight budget, or simply looking to cover a temporary need—term life insurance makes a lot of sense. It’s affordable and offers maximum death benefit for minimum cost, especially during your most financially vulnerable years.
Let’s say you’re:
- Covering a 20-year mortgage
- Starting a family
- Paying off student loans
In these scenarios, term life is a smart way to protect your loved ones without breaking the bank.
🚨 But Here's Where It Breaks Down
The idea behind “investing the difference” assumes discipline, knowledge, and time. But most people:
- Don’t consistently invest the difference
- Don’t understand market risks
- Won’t see consistent long-term returns without proper guidance
And when that term policy expires—what then?
Most people outlive their term coverage, and by the time they realize they still need protection, the cost of insurance may have skyrocketed due to age or health changes.
🔄 Enter IULs and Whole Life: Not Just for the Wealthy
Permanent policies like IULs and Whole Life aren’t just “insurance”—they’re financial tools.
They offer:
- Lifelong coverage (you don’t “outlive” them)
- Tax-deferred growth and tax-free withdrawals (done right, they can fund your retirement)
- Market-linked gains with downside protection (in the case of IULs)
- Living benefits like chronic/critical illness riders
- Cash value that can be accessed during emergencies or to fund major purchases
And unlike your 401(k) or IRA, there are no contribution limits or required minimum distributions (RMDs).
🤝 The Right Policy Depends on the Right Person
Here’s the deal:
- Term life is great for protection on a budget.
- IULs and Whole Life are excellent for those who want long-term protection, wealth-building, and tax-free retirement income.
There is no “best” policy—only the best fit for your goals.
🔍 Final Word From an Independent Broker
As someone who represents multiple A-rated carriers, I don’t push just one product. My job is to educate, guide, and design a strategy that fits you—not the other way around.
So whether you want to buy term and invest the difference or build wealth inside a life insurance policy, let’s sit down and look at your goals.
Because financial freedom isn’t about slogans—it’s about strategy.
📞 Book a consultation or shoot me a text or an email. 407 925 3616 or email info@robinsonjortiz.net
