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Team Cocco Financial Planning

Insurance Alternatives

This calculator illustrates the hypothetical growth of investing an amount of money vs. insurance policy net benefit.

Investment Only
Term and Invest the Difference

Hypothetical Assumptions

%
Term Policy Details

Factors to Consider:

  • Disability
  • Lawsuit
  • Retirement Cash Flow
  • Estate Taxes
  • Investment discipline
  • Tax treatment of gains
Investment
$0
Hypothetical
vs.
Insurance
$0
Guaranteed Death Benefit
Permanent Insurance Death Benefit vs. Hypothetical Investment Growth

📊 Year-by-Year Comparison

Year Annual Outlay Cumulative Outlay Investment Value Death Benefit
The Insurance Alternatives Insight:
  • "Buy Term and Invest the Difference" assumes perfect discipline — most people spend the difference rather than invest it consistently for 30+ years.
  • Investment returns are hypothetical, death benefits are guaranteed — one depends on market performance, the other doesn't.
  • Term expires, needs don't — after the term period, there's no death benefit AND no investment account if discipline failed.
  • The crossover point matters — how many years until the investment exceeds the death benefit? Can you afford to be unprotected until then?
  • Consider all factors — disability, lawsuits, estate taxes, and retirement cash flow needs that permanent insurance addresses.
Team Cocco Financial Planning · Largo, FL · IFR Module 222