Suze Orman has created 12 steps to wealth. Basically, 12 important financial tips that are essential for a healthy financial life. Her steps include getting out of debt, and savings for your children’s education. The 8th step is “insuring your well being”. In this step Suze says that if anyone is relying on you for income, you should get life insurance.
So What Does Suze Recommend?
Suze recommends that you should get term life insurance and continues to add that most people should get a 20 year term policy. Suze Orman also says that the coverage you should get, should be 20 times your annual income. She gives an example that a 35 year old earning $40,000 per year, should get $800,000 worth of coverage. She also endorses select-quote as the place where you should shop for term insurance.
Here are My Thoughts Regarding what Suze Orman Says About Life Insurance:
I respect Suze Orman, and I think that she does give some really good advice to people. I also agree with her that term insurance is going to be what most people end up buying because term insurance is very affordable.
However there are a couple of points that I don’t agree with. First, I don’t think that 20 year term insurance is what everyone should be getting. For example a 35 year old might want to consider a 30 year term policy since he/she will likely work until at least age 65, and a 30 year term life policy will cover that 35 year old for his/her entire working life, as opposed to just 20 years. The cost difference is also very little between a 20 and 30 year term policy for a 35 year old.
On the other hand many 50 year old people that I work with choose to get a 10 or 15 year policy. Often they choose this because a 10 or 15 year policy can be significantly cheaper than a 20 year policy when you are at that age, and a 10 or 15 year policy can cover you until retirement. So what I don’t agree with Suze Orman is that a 20 year policy makes sense for everyone – I think it really depends on the person.
I also think that some people like the idea of getting a permanent policy. If you want to know that the premiums you are paying are going to guarantee that you leave something for your spouse and kids, than a Guaranteed Universal Life policy might make sense. Often times I recommend that my clients purchase some term insurance and some permanent insurance. This combination gives them the peace of mind that they will definitely leave something behind, and it also lowers their total cost by blending a combination of term and permanent coverage.
- Select Quote only offers 11 Life Insurance companies. At ChooseTerm we work with over 30 life insurance companies, including all 11 that Select Quote offers.
- At Select Quote you are working with a call center. Once you get your policy, it is unlikely that you will ever be able to speak with the agent that sold you the policy. At Chooseterm you will always work with the founder of the company and receive great rates and superior service.
- If you have a pre-existing condition you will not get the best rates with select quote, because they don’t work with enough companies to match you with the best company for your specific health condition.
- Suze Orman recommends Select Quote because they are a sponsor of her TV show, not because they are a superior company.
Author: Liran Hirschkorn