So Suze Orman Likes Whole Life Insurance Now?

[unlimitedsigh]

She never hated it in the first place. She just was never paid as much to promote it as she was other, competitive, products.
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GG, I just watched the video.

She asks, first, if the caller has ANY other options (retirement accounts were mentioned).... is she implying that pulling money from those would have been any better? If not, why even ask about them?

Then, she 'OKs' the LI loans ONLY under the circumstances that the person literally doesn't know where their next meal is coming from.... without knowing the terms or the performance of the CV policy - or anything else about the caller's circumstances for that matter.



Basically, she's giving the green light if one absolutely has nothing else to look to and only if their life event has left them destitute and in the streets. Then, and only then, is it OK to borrow from a LI policy....

No, I'd say she is absolutely not in favor of WL at this point. Because she would have otherwise responded a bit differently.

 

[Ami]

Basically, she's giving the green light if one absolutely has nothing else to look to and only if their life event has left them destitute and in the streets. Then, and only then, is it OK to borrow from a LI policy....

???"to borrow from a LI policy..."??? Wrong!

Once again, though this may sound to be "knit picking" which it is not:

One does NOT borrow FROM a life insurance policy just as one does not borrow FORM their CDs or IRAs or their home or their mutual funds, etc. The borrowing is from a lender or lending financial institution - be it a person, bank, credit union, insurance company, etc.

The life insurance policy's "cash in" value - the CSV - just like a CD's "cash in" value is given as COLLATERAL for the loan.

Bottom line: Borrowing is from a financial lender. The insurance policy CSV is the collateral. Time that we get the correct language to be used, to reflect the facts the way they are, and to have fewer people fall for some of the nonsense being spewed by talk-show talking heads.

 

[unlimitedsigh]

Yes, yes. Understood from the first two times you posted it (actually, prior to your posts, but thanks). Everyone knows what was meant (save Suze perhaps, but I think not) - my point was not about the mechanics of the loan or from whom/what it borrowed from, but that the talking head that made it sound like it is the worst thing in the world, even IF you were pulling from you policies cash account directly.

The thread was made to ....illustrate how the financial celebrity's opinions on non-term LI might have changed (or not).

Context is your friend.

 

[vivi]

It's my first time heard Suze say whole life insurance is good. She always tell people to term life insurance in her show. I personally have a whole life insurance. If I take the loan, my interest rate is only 3.75%. It's much better rate then what the bank offer now.

 

[LGilmore]

Just read some Suzy in the costco mag and she actually sounded sane. No big rail against a or b, but actual basically sound advice to the question. Started to wonder for a second if she has a ghost writer as it wasn't her usual blustery day...

She actually sounded like a financial advisor rather than an entertainer.

 

[unlimitedsigh]

Was it generic advice like 'pay down your debt' and 'don't borrow money you cannot afford to pay back'?

I guess she can't tirade against competitive products ALL the time, there has to be plenty of blanket, obvious advice to give to the fans of the former waitress-turned-WS shill...

 

[LGilmore]

"Was it generic advice like 'pay down your debt' and 'don't borrow money you cannot afford to pay back'?"

No, that was why I thought somebody else wrote it for her. It made sense and wasn't overly dramatic... She sounded almost like a seasoned vet of the business.

 

[Cornelius]

Well tonight I ran across her tv show and now she was more specific on term. She said don't buy from a captive. She said buy online from an independent and buy 25 times the annual salary. Kind of tough now for a specific term carrier to quote suzy.

 

[Mattschmidt]

Well tonight I ran across her tv show and now she was more specific on term. She said don't buy from a captive. She said buy online from an independent and buy 25 times the annual salary. Kind of tough now for a specific term carrier to quote suzy.

Watched it too....what I couldn't believe was the advice she gave to a lady who wanted to slowly start moving her retirement income into an annuity. Suze said absolutley NO!

The lady was mid 50's, with little to no debt, and had NO pension through work. So she wanted so set up her own Individual Pension for herself, with a guaranteed income stream from an annuity.

Sometimes I wish her, and Dave Ramsay would get a clue, and realize not one retirement strategy can work for every individual on earth

 

[mmdz33018]

I don't see how this contradicts anything - suze is a proponent of term, and tells this woman its ok to borrow from your life insurance policy, she isn't advocating whole life in the video.

Not wanting to argue but it sure is a big difference from when she would tell people to cancel their whole life policies after over a decade of paying with a few years left to pay so that they could get term and invest the difference.

Financial Education 101: Suze Orman on Life Insurance