Difference — Buy Term Invest The

"Buy Term and Invest the Difference" (BTID) is a financial strategy where you purchase affordable instead of more expensive whole life insurance and then invest the monthly premium savings in the market.

: Set up an automatic transfer of that "difference" into a brokerage account or tax-advantaged retirement account (like a Roth IRA or 401k). buy term invest the difference

: The strategy only works if you consistently invest the savings; spending it instead leaves you with no long-term wealth. "Buy Term and Invest the Difference" (BTID) is

: Calculate how much your family would need for income replacement and debt (often 10–12x your annual income). buy term invest the difference