What Does Suze Orman Say About Life Insurance? 
This is another one of those should n't you ask Suze about ? Suze Orman believes in term insurance for the most part . Her background is as a stockbroker , not as an insurance agent . Her views are shaped by the industry she started in . After the MEC laws came about in the late 80 's , you could n't find many stockbrokers who recommended anything other than term insurance . Probably the biggest reason behind this recommendation was term insurance freed more money for investments which they got paid on , so it made perfect sense to encourage the purchase of term insurance as it freed short term money for investment . The problem is when your investments do n't earn 12 % every year and year after year , things may not work out the way you want . You may find you need life insurance longer than you thought . The real problem with following any financial guru , even if their advice is sound , is what happens when things go off path 10 % or 20 % ? Does the plan collapse ? Was all the investment return earned just you could pay a much higher premium in your old age because you bought term as a young person ? It 's an odd thing to think about in planning but simply ask what happens if you 're wrong ? How much damage hits you if you guessed wrong about the future ? This means taking a broader approach to planning , spreading risk and return to have things work out in different markets . A racing scull is faster than a rowboat , but when a wave hits and flips the racing scull over , but rocks the rowboat , which was a better choice for the body of water ? 