Invest the Difference

I wish to use this example to illustrate the concept of "buy Term and invest the difference".

A female at 25 can buy a 40 year Living Benefit (to cover death and critical illness) to cover $50,000 by paying an annual premium of $190.

To buy the same protection under a Living policy, the policyholder has to pay a premium of $960.

If the difference of $770 is invested to earn 4% per annum, the accumulated sum at the end of 40 years is $73,000. This is higher than the cash value of the Living policy at age 65.