Buy term, invest the difference

Buy term, invest the difference (BTID) is the practitioner consensus alternative to VULs: if people depend on your income, buy term insurance — pure death-benefit coverage, no investment component, a fraction of the premium for the same coverage — and invest the freed-up difference somewhere that pays you, such as MP2 or an index fund. Same protection, and the investment compounds without the bundle’s fees and commissions. The audit is mechanical: quote both, compound the difference, compare ten-year outcomes.

First used in: 0.4 · Scam armor & how this course works