Why Do Suzie Orman and Dave Ramsey Trash WL So Much?

[sshafran]

Term protects your survivors IF you die

Perm protects your survivors WHEN you die

That is a good way to put it.

Not sure why they trash it...I think the OP was right. They are giving advice to the masses, and their advice may work for some, but unfortunately, it doesn't work for all.

Dave is big in churches too. In fact, a guy at my church rebuked me for selling WL...based on Ramsey. He took Ramsey's advice and bought term. The easiest way to deflect the ignorance? I asked him how his investments were doing. He wasn't even investing!!!

Point being, tons will follow the first part (buy term) but they won't the second part...they just go out to eat more often.

 

[arnguy]

Because they don't know any better!

 

[Norwayguy]

The reason the Buy Term invest the difference is destined for failure is that people think they can afford one but not the other...they think that WL is too expensive but the cost is the same they are supposed to take the savings over whole life and invest it...but has been mentioned many times few are investing and even fewer are investing the true difference...the one thing buy term invest the difference is great about is that it is a nifty slogan.

 

[LGilmore]

If a person only has the difference in premium between whole life and term to invest, they are going to have problems anyway. Especially if they aren't "set" after 20 years with Dave's guaranteed 12% return.

As I said before this concept may work for some, it doesn't work for many. My business has "matured" as many of those people who bought into the concept face retirement still with the need for insurance. Usually a greater need than before and at a much higher cost. term has a way of getting even if you need it longer than planned.

 

[Mburns]

Term has a way of getting even if you need it longer than planned.

Good comments from everyone, I particularly enjoy this one. Thanks!

 

[xrac]

The reason the Buy Term invest the difference is destined for failure is that people think they can afford one but not the other...they think that WL is too expensive but the cost is the same they are supposed to take the savings over whole life and invest it...but has been mentioned many times few are investing and even fewer are investing the true difference...the one thing buy term invest the difference is great about is that it is a nifty slogan.

Most people who cannot afford whole life also cannot afford to save enough money to invest the difference.

 

[Death Cab For Tootie]

Most people who cannot afford whole life also cannot afford to save enough money to invest the difference.

Well put. Most net savers would do well with using WL as their long-term conservative asset versus CDs, money markets, and savings accounts.

 

[ims01]

They need to speak in broad generalitites becasue of a broad audience. I'd venture to say that there is an appropriate client for just about evey product on the market and visa versa. You need to know the products and understand your cleints needs then match the two. If they dont like plan A, go to plan B.

 

[moonlightandmargaritas]

Over the years I've delivered a fair amount of death claims. Not one single beneficiary has ever asked me whether it was term or whole life...

 

[Rollem]

I think Suze is or was affiliated with Metlife-check Cali DOI. Also I'm sure Dave gets some pretty nice "kick-Backs" from his "recommended" Term provider.

BTW, I wonder if Mr. Ramsey is writing a new book for all of us in middle America? It sure seems he needs to restructure his 10-12% market return theory/system. What year was that book published?