Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Concept explainers

Types of Insurance Contract
Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insu…
Question
  1. Explain the concept of “buy term and invest the difference (BTID).”

a. Include in your explanation the merits and demerits of this concept.

b. Do you think that this is a good idea or a bad one?

 

 

 

 

 

  1. a.Include in your explanation the merits and demerits of this concept.

-

  1. Do you think that this is a good idea or a bad one?
Expert Solution
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The buy term and invest the difference (BTID) refers to the actual amount that is needed to buy the permanent whole life insurance policy and then it compare to the same amount of term policy

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