Should You Buy Term and Invest the Difference?

The traditional “buy term and invest the difference” financial strategy of buying low-cost term life insurance and investing the difference in the stock market was created to replace the plan of buying expensive cash-value life insurance or permanent insurance.

Buying term and investing the difference is NOT the best strategy.

When “investing the difference” in the market, you put your retirement money at risk, due to the threats of government overspending, terrorism, and global economic competition. The stock market failed the “safety test” when it was truly pressure tested in 2003 and 2008. The next time the pressure of market volatility comes, the results will be similar.

Predictable and stable strategies are needed to achieve an abundant retirement.


When a max-funded, tax-advantaged life insurance contract is structured correctly and funded properly, it can become very inexpensive, compared to traditional cash-value insurance. It provides death benefit for legacy planning but also has incredible living benefits such as tax-free income and liquidity.

When E.F. Hutton, the original designer of max-funded, tax-advantaged insurance contracts introduced the concept in 1980, it was specifically for the purpose of eliminating the dangers of market volatility and the negative impact of taxes and inflation.

A properly-structured MFTA insurance contract can be the ultimate “buy term, invest the difference” strategy, couched under a tax-free umbrella (although insurance is NOT an investment). An individual can potentially be “self-insured” in less than fifteen years.

Money inside a MFTA policy can be indexed to the market, but is not in the market. This allows your money to grow when markets are up and also be protected from loss during downward market trends.

*Life insurance policies are not investments and, accordingly, should not be purchased as an investment.


Don’t get caught with your money at risk. Indexing is a safe yet innovative financial solution that combines the power of upside market potential, yet limits the risk of losing your principal when markets plummet and fall. Your money is safe and secure with companies that were established in the 1800s and endured the Great Depression.

Learn more in-depth details about indexing at one of our upcoming events. Register now, either on-line or in person by clicking here.