Agent Owner, Gilmore Insurance Services, Marysville, Washington State
At this time Suzy Orman reccomends Term Life insuance. In the past few years she has become a bit more tolerant of permanent products in some of her apperances. One should understand that Suzy does not have an insurance background, she has a securities background. The Securities industry has not promoted permanent life insurance since the laws were changed in the 1980s restricting how much money could be put into permanent life coverage in regards to tax status. Suzy was taught permanent was bad, by people who honestly felt permanent insurance took away money they could have for investment elsewhere.
One thing to keep in mind when purchasing term insurance is always look for a "convertible term" policy. A convertible term policy allows you the option to purchase a new permanent policy without underwriting in the future just in case your planning does not come out exactly as you expected.
Suze Orman recommends term life insurance over participating whole life insurance, which she has a disdain for. She as well as Dave Ramsey are huge proponents of term life insurance. And for financial liabilities that are time certain events, that’s just fine. Generally you can only recommend what you understand. That in and of itself can eliminate your opining on an area you just don’t understand.
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One thing to keep in mind when purchasing term insurance is always look for a "convertible term" policy. A convertible term policy allows you the option to purchase a new permanent policy without underwriting in the future just in case your planning does not come out exactly as you expected.