Some weeks ago, I compared the “returns” of Term and Life Insurance. The results show that Term tends to outperform Life most of the time. You can read about the comparison here.

I have received some comments about Life Insurance being able to provide cash value while Term Insurance has none. Also, Life Insurance allows you to pay the premium upfront and you will be covered for your whole life.

In this article, I am going to explain the second part of “Buy term and Invest the Rest” and show you exactly how much returns do you need to generate from a Term plan in order to outperform a Life Plan.

This comparison is done using Term and Life plans from company T. Term coverage is calculated to age 99. Here are the premium amounts for a $300,000 death benefit plan for a male at age 30:

For Term cover ...