"Buy term and invest the difference" has been a popular sales slogan for term life. The pitch compares term, the least expensive form of life insurance, with other kinds of life insurance.
$100,000 death benefit at age 35
Annual whole life premium: $1,800
Annual renewable term premium: $250
What are your choices?
Buy whole life. The “difference” is used to keep your premiums lower than the actual cost of insurance as you get older.
Buy term. You keep the difference.
In addition, make sure you consider the following: