Deepak: Hi Suze! We love your show. My wife and I watch it every week. It's such an honor to talk to you.
Suze Orman: Oh. Thank you! What can I do for you?
Deepak: Well Suze, a friend has recommended that we buy a whole life insurance policy as an investment.
Suze Orman: Stop! Stop! There isn't a friend in the world. Not one friend in the world that if it's a true friend that'd recommend you buy a whole life insurance policy. A snook, somebody who wants to take you, somebody who in my opinion isn't a friend maybe. But there is no way a friend would do it. Does that answer your question already?
Deepak: It gives me a good sense of what you're thinking.
Suze Orman: Alright, how old are you though Deepak?
Suze Orman: How much of an insurance policy? What was the death benefit?
Deepak: Um, I think 50…$500,000.
Suze Orman: $500,000? Alright how much was it per year?
Suze Orman: Fourteen Hundred?
Suze Orman: Fourteen Thousand dollars a year?!?!
Deepak: …and the idea was largely use it as an investment to put money away to save on taxes.
Suze Orman: Ok, just out of curiousity…made my nose itch. I've to tell you whenever my nose starts to run I feel like Samantha…where I
wanna…you know on Bewitched? I don't know if you were even born back then where I want to twinkle my little and get that guy out or whoever that friend is and off the face of this Earth.Listen, insurance isn't an investment. Does this friend of yours happen to sell whole life insurance?
Deepak: Boy it seems like you're reading my mind here.
Suze Orman: Oh sweetheart that's not a friend that a sn….I don't even know %#*#)$! You know, it gives me dandruff I think. Listen, you can get a half a million dollar term policy for 20 years at your age for approximately $25 or $30 per month. OK? That's $300 per year. Now, if you really want to make an investment you could take all those other $1000s of dollars and take that money and invest it where? In a retirement account, a piece of real estate, in stocks, bonds, whatever it may be where it absolutely makes sense to you.
Do you know that I'm a licensed insurance agent. A life insurance agent and I'm licensed in every single state in the United States except Hawaii because I don't want to go to Hawaii right now to take the exam.
So I've been licensed everywhere. Very few people can tell you that they've that type of insurance background. I can tell you that if you
put $14,000 into a whole life insurance policy, my friend, how much commission do you think I or your friend would make off of that $14,000 deposit?
Deepak: Like atleast a thousand or two.
Suze Orman: Oh, are you sitting down?
Suze Orman: Are you? What don't you try about $10,000. Ok?
Understanding that term life coverage (if you actually need life coverage) is the best option you can take your savings a step further by comparing Term Rates online. Listen to Suze Orman. She gives solid advice.