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

[Mburns]

Now, as a newbie, I certainly don't mean to start a flame war of any sorts.

But I'm trying to figure out why Dave and Suze so vehemently hate Whole Life Insurance. I've watched many videos where they say it's a sham and why term is the only way to go, buy term invest the rest etc...

What is everyones opinion on this? I am working in Texas so these kind of people hold a lot of sway. Not a ton, of course, since we still sell Whole Life without too much problem, but in the market I'm getting in to they practically swear by Dave and Suzie.

Any tips on how to work around this, or how to kindly point out to my prospects and clients why Dave and Suze are a bit off?

 

[BNTRS]

It's simple, they don't understand it.

 

[Norwayguy]

Now, as a newbie, I certainly don't mean to start a flame war of any sorts.

But I'm trying to figure out why Dave and Suzie so vehemently hate Whole Life Insurance. I've watched many videos where they say it's a sham and why term is the only way to go, buy term invest the rest etc...

What is everyones opinion on this? I am working in Texas so these kind of people hold a lot of sway. Not a ton, of course, since we still sell Whole Life without too much problem, but in the market I'm getting in to they practically swear by Dave and Suzie.

Any tips on how to work around this, or how to kindly point out to my prospects and clients why Dave and Suzie are a bit off?

Realize that you can't fix stupid and actually Dave Ramsey can be your friend in that he believes in having Health, Life & DI.

Whenever I speak to a Dave or Suzie fan I get into a short conversation about absolutes...I ask them if they believe everyones situation is exactly the same (obviously not) I explain that their advice is good for a vast many people then I get down to their situation and my recommendations.

 

[LGilmore]

Suzie got her training at Merril Lynch. Whole life is a product that takes away monies from investments that Merril sells. Before MEC, merril used to love WL.

Dave, I'm not so sure of where he learned his stuff. He's basically this generation's Al williams.

The concepts they promote have been around a long time before either.

Actually I have them to thank for alot of my business as I write alot of older (late 50's and 60's) people for whom the stragety didn't work out for and they are now buying again at a much, much higher price. More often than not their health isn't as good so as an agent you're making a great commission off of the sale.

For some maybe the buy 20 year term and invest the rest works, I don't run across many as life constantly changes and the needs you purchase your policy for 20 years ago are gone, only to be replaced by new things that need to be covered.

 

[Mburns]

Realize that you can't fix stupid and actually Dave Ramsey can be your friend in that he believes in having Health, Life & DI.

Thanks for the good laugh in the morning! And I didn't know he was an advocate of Health and DI, so that's useful!

I agree too with the individual situation. I think that's a great line to use.

Anyone else come across these kinds of people? I'm trying to find any youtube videos where someone actually tries to debate Suze or Dave, I think that'd be hilarious!

 

[Fisher]

I'm trying to find any youtube videos where someone actually tries to debate Suzie or Dave, I think that'd be hilarious!

It might help in your search to spell the name correctly.

Suze.

 

[xrac]

.....Any tips on how to work around this, or how to kindly point out to my prospects and clients why Dave and Suzie are a bit off?

Sell them term.

 

[Dave020]

A lot of it is because pundits (including a lot of agents selling WL) focus on the minutea or focus on the values of each product that are not really values.

As mentioned above, it is an individual situation and decision. Both products work well in situations where they are appropriate.

Keep it simple.

Term protects your survivors IF you die

Perm protects your survivors WHEN you die

 

[JMO Fan]

Suze and Dave sell ideas to those who think they're smarter than average - which is pretty much everybody.

If you're smarter than average, you can buy term, earn more on investments than WL.

Problem is, math tells us that most of us are not smarter than average.

Only a rare few (such as millionaires like Dave & Suze) can afford to take balanced, smart investment risks with enough money to beat the life insurance company investments.

If a person doesn't have enough money to invest, term might be the only option.

For someone who has a little to invest, UL and par WL offer no-risk opportunities while providing needed life insurance coverage. Most people would do better with one of these than with CDs and mutual funds. But as it is well-stated above, this varies a lot by individual.

 

[nycagent]

xrac is correct. You'll be doing neither yourself nor them any favors by trying to convince them of the benefits of WL. The best thing you can do for you and them is to make sure they get a term policy for the right amount of coverage and the appropriate length.
Stay in touch with them, and in 5yrs when the new talk show host flavor of the day is recommending WL, you'll have your sale.