Should You Buy Term Insurance and Invest the Difference?

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Jim Lorenzen, CFP®, AIF®


I first heard this mantra in the 1970s.  It resurfaced again in the ’80s and again in the 90s.  Funny thing is it’s only the guru’s selling CDs and DVDs – people who are neither registered, regulated, or even have a single client – who keep promoting it.

Nevertheless, it does sound good!  Would it work.   I thought you might like to see an independent analysis that even gives term insurance a head start!  What if you could buy $500,000 of term insurance for only $1 a year!   Silly, I know, but, the analytics are interesting – and worth understanding.

I think you’ll find it interesting.  You can access it here.



Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® serving private clients since 1991.   Jim is Founding Principal of The Independent Financial Group, a  registered investment advisor with clients located across the U.S.. He is also licensed for insurance as an independent agent under California license 0C00742. The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.