Buy Term And Invest The Difference

[aclaro]

Since Universal Life is built on buy term invest the difference, shouldn't you be selling a ton of them?

 

[jboussea]

Buy term and invest the difference (affectionately known as BTID on the forum) compares the costs of term insurance and the (assumed) returns of equity investments... to whole life insurance returns.

There is FAR more to whole life insurance than just the returns.

Plus, BTID is a REPLACEMENT statement and is incomplete. The true phrase is "buy term and invest the difference with me."

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http://mrk.assurity.com/PDFs/WholeLife_IncorrectStatements.pdf

Are there any simple BTID comparison tool... I try to work with INSMARK .. but I 'd have to sit down and learn it..

 

[DHK]

My writing pad works rather well.

IARFC

If you want to learn how to put this into an easily understandable presentation, you can learn it from the Insurance Pro Shop's online training videos. If you do this right, then there will be two responses that you'll hear 99% of the time:
- "Why would anybody buy term insurance?"
- "This is the first time I understood the difference."

 

[jboussea]

My writing pad works rather well.

IARFC

If you want to learn how to put this into an easily understandable presentation, you can learn it from the Insurance Pro Shop's online training videos. If you do this right, then there will be two responses that you'll hear 99% of the time:
- "Why would anybody buy term insurance?"
- "This is the first time I understood the difference."

I've watched the IPS videos and listen to the audio quite a few times now.. it's really a great way to simplify for clients...
..but I'm looking for a comparison calculatr for myself rally not something I would do in front of client.. I'd like to crunch numbers.. one thing I really want to see is how much the IRR would have to be for the BTID to make sense .. and yes I know even the IRR starts to be attractive.. there's always the risk factor ..

 

[DHK]

Here's the link for InsMark and Assurity to help you with Perm vs Term.

Just remember that rate of return is not all there is to compare.

Also, if you happen to buy a life insurance system from IPS (Found Money Management or the Mortgage Insurance Tool Kit), there is an excel template to compare "buy term and invest the difference".

 

[jboussea]

Here's the link for InsMark and Assurity to help you with Perm vs Term.

Just remember that rate of return is not all there is to compare.

Also, if you happen to buy a life insurance system from IPS (Found Money Management or the Mortgage Insurance Tool Kit), there is an excel template to compare "buy term and invest the difference".

Ive had ips for about a monrh but i need to get Microsoft Office so i can run them.. I should have that soon