Tuesday, June 25, 2019

Suze Orman – Term and Life Insurance Comparison

May 6, 2015 by  
Filed under Life Insurance

Suze Orman explains the difference between a Term and Life Insurance See more information at …

Video Rating: 4 / 5


25 Responses to “Suze Orman – Term and Life Insurance Comparison”
  1. godsknite says:

    She just ruined this caller’s life. What she failed to ask, which is
    important, is the nature and return on the whole life policy. Is it
    practical to get $1M in WL? Probably not unless you have massive
    inheritance taxes that will hit your inheritors. Whoever sold her that much
    was trying to make a buck off of her, but that doesn’t mean WL is a sham.
    Term Life: It is designed for a period of time, not to designed to be
    permanent. You get it to cover a house, extra income for surviving spouse
    to care for children until they are out of the home, pay off large debts,
    things like that. On the dollar, you get a lot more for your money IN THE
    Whole Life: Designed for the rest of your life. What Suze fails to identify
    is that WL never goes up in premium, where that Term insurance described
    would be jumping at age 69 to be approximately $8k a month. Yes, Seriously.
    Not only that, if the policy is in a good Mutual Company (yes, it is
    important that it be with a mutual company) then you are getting a return.
    Right now the average rate of return on WL insurance is about 3%, and has
    been consistently rising. In addition you get dividends on the company
    which can be further invested into the policy for better returns. In some
    cases (not all) this can be better than the rates you would have on a fixed
    account investment, and is a good reason many people use certain forms of
    whole life insurance for investing their money for growth, without a
    concern at all about the death benefit.

    So what does all that mean? It means that most people with a family to take
    care of should get a smaller amount of WL that will take them to the end of
    their life. Have some term to cover higher living expenses while you are
    younger, and then drop the term when you get older. If you pick the right
    company, that WL can be part of your retirement fund, and you can use it
    while you still are alive.

    In regards to the “You can invest and make 8% on it”. This has to do with
    market returns. At no point are your funds guaranteed. It isn’t bad to
    invest in the market if you are of such a mind to do so, but recognize that
    you are risking your money. Most people should have a balance of
    conservative and aggressive investments when they are younger, moving to a
    more conservative stance as they grow older.

    Long and the short: Don’t listen to Orman on this matter. I am not saying
    she has nothing useful to say in finances, but the advice she gives here
    can destroy your family’s finances, because odds are if you bank fully on
    term insurance, you will have thrown away your money when you get old, or
    have hit it big for your family if you die young. Better to have an option
    for a good life when you are old, and have your family taken care of
    responsibly no matter what happens.

    Feel free to visit my page https://www.facebook.com/SeanKeeleyNYL for more
    information on how to responsibly take care of your future.?

  2. FWDC Norac says:

    The comment section is always hilarious in these videos. 3 groups always
    chime in. 1) Life insurance agents. 2) Investors and money managers. 3) The
    borderline brain dead Orman/Ramsey cultists that drank WAY to much “20
    second Kool-Aid”. All 3 groups are doing nothing more than being “echo
    chambers”, reciting the same old catch phrases without any original thought.

    The most amazing thing about these comments are the fact that NOBODY ever
    suggests a comprehensive blend of all the available options out there. All
    the advice above and below is read like a “whole hog” approach.

    Life insurance agent – “Buy my stuff!”
    Money manager/Investor – “No, buy my stuff!”
    Suze and Dave – “Don’t listen to these guys. Take it from me. You wanna buy
    my sponsor’s products.”
    Brain dead Orman/Ramsey cultists – “Buy term and invest the difference!!!”
    Me – “Invest into what?”
    Brain dead Orman/Ramsey cultists – “Uh, umm, invest the difference!!!”
    Me – “Yeah, okay, sure” smh


  3. ABRAY85 says:

    That caller is slow in the head.?

  4. Allie servellon says:

    Check out this video on YouTube: why whole life insurance is bad and term
    life insurance is better.?

  5. Eduardo Trevino says:

    I’m just learning whole life agent speeches.?

  6. Annamarie Maldonado says:
  7. My Life Insurance For Elderly Parents says:


  8. Dylan Kvaale says:

    It’s funny. Why doesn’t Suze Orman have to do any “fact finding” about a
    person’s financial situation before she makes recommendations? Permanent
    Life Insurance is not right for everybody, term is sometimes the best
    option. HOWEVER, when used CORRECTLY life insurance can be an amazing
    financial tool. Suze, give me another financial product that defers taxes
    as your money grows, allows you to take distributions tax free, doesn’t cap
    the amount you can save, and doesn’t make you wait until 59 1/2 to take it
    out. There isn’t one. Keep in mind people, we are $17 Trillion in the
    hole as is stands today. Taxes are going to go up! So, when you’re
    retired and you have your 401k plan that you’ve worked on your whole life,
    just remember, Uncle Sam gets whatever percentage of that he decides to
    write into the tax code. Maybe 35%, maybe 50%, maybe 60%, we don’t know.
    What we do know, is that if the gov’t decides they want more of
    your 401k or IRA, they can take it by raising taxes. I suggest you stop
    listening to Suze Orman and think about investing in something that has a
    hedge against taxes and government regulation, life insurance is a great
    tool. Again, it’s not for everyone. For example, before you buy permanent
    life insurance, make sure you and your spouse are maxing out Roth IRA’s
    first. ?

  9. Westley Halstead says:

    She’s right… They are young. Term and mutual funds will do the trick. She
    needs a xanax tho.?

  10. Esmeralda santana says:

    Yes susie is very right , that is a ripoff whole life is a rip off. Just
    invest the difference in a Roth IRA! And you’ll see how much money you have
    it’s amazing how much money you’ll have! Thanks to all this knowledge to
    Primerica I’m learning quite a lot!?

  11. Buck Futter says:

    Term life, once the term is over, payment increases as you age should you
    choose to extend it… just keep that in mind. For those who say that whole
    life is a ripoff, yes face value may be less but remember that it takes the
    guesswork out of investing. If something happens, then you get a guaranteed

  12. Ly Yang says:

    At time, I wondered how many policies Suze Orman Sold, if any? ?

  13. TERRY RAINEY says:

    Bank Acounts……770 ACCOUNTS that make more money ????

  14. Westley Halstead says:

    She’s right… They are young. Term and mutual funds will do the trick. She
    needs a xanax tho.?

  15. jrhones2000 says:
  16. jrhones2000 says:
  17. Alex Appleby says:

    Awesome!! Never said better!! Buy Term and invest the difference!!?

  18. Priti Gupta says:

    Get Free life, auto , health and home Quotes From www insuranceandquotes

  19. Pennsylvania Elder Estate Advocacy Services says:

    She has a few valid points, however when you still need insurance at the
    end of the 30 year term (or any term period) if it guaranteed renewable it
    will be at a much higher cost and it is like renting a house you never own
    it. I heavily suggest you do a combination of permanent and term insurance
    or look at an equity indexed annuity instead. Each type of insurance has
    its own benefits, but diversifying is better than dismissing.

  20. Justin Hardee says:

    That is an outright lie, zucchini. You have no idea what you are talking
    about. A whole life policy face is value will never be below what it is on
    day one. In most cases, with paid up additions, it will be considerably
    more than the original face. Don’t give out advice when you have no idea
    what you are talking about.

  21. Brooks Loomis says:

    $900/mo *12 months (of today’s dollars) = $10,800 in Yr 1. If I assume an
    inflation rate of 2.5%, then over the course of 30 years that would equate
    to $474,149. That’s zero-risk, “stick your cash in your mattress” taxable
    dollars. If starting in Year 1 I were to invest those dollars and get an
    average expected rate of return of 4.5%, over 30 years that would be
    $889,785. Those may be conservative assumptions (4.5% ROR), but I didn’t
    factor in losses, and Year 30′s premium would not be invested

  22. Stephen Joseph says:

    Before applying assess your situation. The application process is not just
    about your current health it is about your health, financial, and personal
    history – ALL OF IT.Be sure you are comfortable with giving insurance
    companies full access to that information. Also, the questions are totally
    invasive so any mis-communication can be used against you as a reason to
    deny coverage to your beneficiaries. My advice is live as healthy as
    possible, save your money, and don’t go into debt.

  23. TheBuildGroup says:

    You’re the ONLY one misleading! What estate taxes? Clarify your statement.
    At 69, if he dies with almost a million saved, I think they can just write
    a check. That’s just common sense. Quit giving people half truths!

  24. Peter Wexler says:

    Choosing a whole life versus a term life insurance policy is more about
    personal preference. In one case, the customer builds a nest egg. In
    another, the insurance is meant only to help those left behind, in the
    event of one’s death. Both policies have value. For people older than 40,
    term life is probably better. For people younger than 30, whole life is
    better. Keep in mind that there is a point when whole life insurance is
    self sustaining.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!