“Buy term and invest the difference” is a popular financial strategy that suggests buying term life insurance, which is typically less expensive than permanent life insurance, and investing the difference in cost into other investment vehicles like mutual funds or retirement accounts. The basic idea behind this strategy is that term life insurance provides coverage for a set period, usually 10, 20, or 30 years, during which time you can use the money saved by not purchasing more expensive permanent life insurance to invest in other opportunities that can provide higher returns over the long term. While this strategy can work for some people, it is not always the best choice for everyone. There are a few things to consider when deciding whether to use the “buy term and invest the difference” strategy: The amount of life insurance coverage you need: If you need a large amount of coverage, term life insurance may be more affordable in the short term, but the cost of premiums may increase significantly as you get older. Your investment knowledge and risk tolerance: To make this strategy work, you need to be able to invest the difference in a way that provides higher returns than permanent life insurance would. If you are not comfortable with investing, or if you have a low risk tolerance, this strategy may not be right for you. Your overall financial goals and needs: This strategy may be a good fit if you have a long-term investment horizon and can afford to take on more risk. However, if you have more immediate financial needs, such as paying off debt or saving for a down payment on a house, you may need to focus on those goals before investing in the market. Ultimately, the decision to “buy term and invest the difference” will depend on your individual circumstances and financial goals.