Principal, LifeNet Insurance Solutions, Redmond, WA
Whether it's Suze Orman or any of the other "gurus" that discuss life insurance for the majority of people, you must have a point of view that defines you with an audience. Orman is life a stopped watch, she is exactly right, but not all the time. The problem with other types of coverage is that many people spent money on whole life at the behest of an agent when that is not the appropriate type of coverage. Beware anyone that tells you what to purchase without knowing anything about your particular situation.
Suze Orman likes Term Life Insurance because it is a low cost way of protecting your family if you should die while they are dependent on your income. The product is easy to understand, is straightforward, and if you should die before the term is up, the death benefit is paid tax free to your beneficiaries.
I don't know or watch Suze Orman so I can't really state why she likes term life insurance over cash value life insurance. I do know that Suze Orman, Dave Ramsey and other talk radio types make blanket statements that do not suit every ones situation. The thing to remember their advice is free and you get what you pay for. Use a trusted independent advisor when purchasing life insurance to be sure you get the best product at the best price for your unique situation.
That is a great question! I didn't think she liked much of anything, except big piles of cash! ( I'm joking, of course) My guess is that she likes it for the same reason that Dave Ramsey does - it's cheaper than whole life, if you need to purchase life insurance at all. In their worlds, (think middle to upper middle class and higher), you should purchase term life insurance, save or invest the difference of what your whole life would have cost, and hope that you die within the term period. Some people are able to do that, and so the financial guru's smell like roses with their good advice. I hope that helps, ( and no offense meant, Mr. Ramsey or Ms. Orman), thanks for asking!
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Suzie and others in her line of business are still promoting the "Buy term and invest the rest" philosophy. Which was maybe a viable strategy 30+ years ago when you could count on 10 to 20% return on investments. However in the more recent economic environment investing in a good Whole Life policy with a Mutual company can provide the safe, guaranteed financial growth needed in these volatile times as well as provide a cash fund that can be used for investing in the market when things bottom out so that you can take advantage of the up turn in investments when it happens. All while at the same time protecting your family and assets.
Senior Commercial and Annuity Specialist, Freedom Brokers, Marion, Carbondale, Harrisburg IL
My dad always said, "follow the money". Let's just do that. Suze Orman likes ratings. Suze Orman likes to get paid for those ratings. Ratings are helped by controversy. And by saying that one size fits all, you develop a following about that belief, as well as controversy for those who do not believe the same way.
So the Stars (self enlightened) make money whether you agree or not..
Way 1. Referrals - For those who agree, people like Suze Orman and Dave Ramsey, likely have deals with a company that pays them a fee to refer customers. If I told you that everyone in the world needs to wear a size 8 dress, regardless of their shape or gender, you would call me crazy, Little did you know that I bought a machine that only turned out size 8 dresses.
Way 2. Ratings - Controversy raises ratings on their show. Advertisers pay more because their audience is larger. Stars make more of the advertisers dollars.
Do I really believe that the popular financial stars of the day do for themselves everything they tell you to do? Do you really think Dave Ramsey's largest asset is his paid off house, or that he drives around in an old beater?
The opinions are my own. Follow the money.
.JPG){kind=avatar}
So the Stars (self enlightened) make money whether you agree or not..
Way 1. Referrals - For those who agree, people like Suze Orman and Dave Ramsey, likely have deals with a company that pays them a fee to refer customers. If I told you that everyone in the world needs to wear a size 8 dress, regardless of their shape or gender, you would call me crazy, Little did you know that I bought a machine that only turned out size 8 dresses.
Way 2. Ratings - Controversy raises ratings on their show. Advertisers pay more because their audience is larger. Stars make more of the advertisers dollars.
Do I really believe that the popular financial stars of the day do for themselves everything they tell you to do? Do you really think Dave Ramsey's largest asset is his paid off house, or that he drives around in an old beater?
The opinions are my own. Follow the money.