#insurance

4 articles

Whole Life vs Buy-Term-and-Invest: $383K vs $95K at Year 20

The same $8K/year, two different paths. Whole life delivers $95K cash value at year 20; term + index fund delivers $500K death benefit + $383K portfolio. The unbundling premium is real.

HDHP Saves $1,800/Year if You're Healthy. Costs $3,400/Year Extra if You're Not.

Low utilizer (under $1K healthcare/yr): HDHP wins by $1,500-2,500 with HSA tax shield. High utilizer ($8K+): low-deductible plan wins by $2-4K. Mid utilizer: coin flip. The break-even threshold is your honest forecast of next year's spending.

Family of 4, $85K Income, $300K Mortgage: DIME Says $1.14M Coverage (Term Costs $50/mo)

DIME framework: Debts $315K + Income replacement $1.275M + Mortgage already counted + Education $200K = $1.79M needed. Subtract existing $650K (savings + spouse income capacity) = $1.14M coverage gap. 20-year term: $40-60/month.

'Pay $60K, Get $100K' Is a 2.6% IRR. Here's Why.

Insurance brochures advertise the headline gain. Run the same numbers as IRR — accounting for the fact that you paid in over 20 years, not all on day 1 — and the return drops to bond-fund territory.