Suze Orman – Term and Life Insurance Comparison



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

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25 Replies to “Suze Orman – Term and Life Insurance Comparison”

  1. Wow 1100 spending for insurance. Why take life in the first place when u see the difference already. Did the agent even explain it to you. I mean that's a simple math..my opinion there is something behind..my guesstimation is you are using the life dividend to pay the term. My guess

  2. Whole life is 5x-10x more than Term.. true
    You could have invested the difference in other options (like mutual funds-).. the problem here is it's NOT just about the direct ROI of what you spend. It's also about external factors that get in the way of life.. like taxes (Whole life is after tax), health conditions (once accepted for Whole life, no more underwriting), leveraging for Long Term Care (growing problem in the US). The point is it's not about choosing Term over Whole or vice versa.. it's about diversifying to hedge future risks and vulnerabilities. If you accumulated $500k in a 401k by the time you retire, then that is great but guess what comes next.. taxes.. and it's not just "one" tax.. the tax liability will extended into other areas resulting in compounding LOSSES (tax on tax on tax).. talk to a CFP or tax attorney who is knowledgeable in the areas of Cash Value Life Insurance. It will never be wise to completely ignore one side of the spectrum.

  3. Term Life isn't better or worse than whole life. Sometimes its better to get term if you are young because the premiums are cheaper but when you get close to the end the term you might want to convert it into a whole life while picking up another term. What a lot of people don't realize is the whole life insurance is not only a great tool to keep your taxes down but it can also be part of a retirement account. If you build a whole life policy you can be in a good financial situation when it comes to retirement age.

  4. How stupid she is!
    you never get your money back in a term, and when it ends, you may not even be insurable". people live much longer. Terms don't grow. Yes we need Insurance when we get older.

  5. lol She is fucking retarded. Whole life is awesome if it is set up correctly. If you look at hillary clinton and her finances on page 4 http://pfds.opensecrets.org/N00000019_2015_Pres_A.pdf you will see her and bill clinton own 5 of them… Hmm maybe the rich know something we dont about whole life.. If buy term and invest the difference was so great.. why are so many retirees struggling.. maybe its because the market steals wealth… and if that is your only source of money when you retire your screwed when the market tanks (and it will) and you withdrawl.. locking losses to never recover from.

  6. Wow…….we get it. Term costs less than whole life! Now, should we shop for the best term policy as well, or just buy one from an insurer thats ranked a distant 62nd place amongst all term insurers, and only has a 1.8% share of the entire term marketplace, Primerica?

  7. 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 SHORT TERM.
    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.

  8. 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

     

  9. 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.  

  10. 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. 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 return.

  12. You basically dont know what you're talking about. Term is cheaper and gives you more coverage but dig a little deeper and you'll see that WL is the better deal over the long run. Is term cheaper? Yes it is but what if you just happen to outlive the time frame? You're back to square 1 with nothing but cancelled checks and much older. Maybe you're not quite as healthy anymore .Maybe you're now uninsurable.. WL pays for itself over time and the death benefit increases as well.

  13. And when the insured dies, the beneficiary will receive the death benefit ($1,700,000) but they WILL NOT receive the $900,000 cash value. I think that's where the "rip off" is. If they invested that money (mutual fund or annuity), it would all be there for the beneficiary! Even if it's not $900,000…however much it is would be 100% theirs. true or true?

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