Suze Orman: If An Adviser Tries to Sell You Cash Value Life Insurance, Find a New Adviser

Suze Orman

Suze Orman, Hero of the Life Insurance Industry

Suze Orman is a famous American financial adviser, bestselling author, and host of The Suze Orman Show

She is also one of the few Americans (maybe the only American) to be licensed to sell insurance in 49 out of 50 US states. Her views about life insurance are unquestionably authoritative.

Suze has a top ten list of investment products that she most hates. At the very top of the list is variable life, variable annuities, universal life, and whole life insurance. (Variable life and variable annuities are types of ILAS.) She says these products do nothing for investors and everything for the people who sell them. She calls the products “ripoffs” and advises investors to find a new financial adviser if their current adviser tries to sell them one.

Suze believes that the only type of life insurance that people should own is term life insurance, which is usually about 10 times cheaper than other insurance products. (The commission is also about 10 times smaller.) With the money that is saved by buying term instead of a “cash value” life insurance product, Suze recommends investing in funds directly (in a tax-advantaged retirement account, if applicable).

Below are eight different clips from her TV show. In each clip, she briefly analyzes a different person’s life insurance investment and explains why it is crap.

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