This calculator illustrates the hypothetical growth of investing an amount of money vs. insurance policy net benefit.
IFR Module 222 · Insurance and Financial Review Methodology
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.
Disclaimer. Third-party product names and methodology names are the property of their respective owners. Reference does not imply endorsement or affiliation. This tool is the work product of Nate Cocco; the analysis is reviewed by Nate before any client recommendation.