Suze Orman's Core Advice on Life Insurance

Direct Answer

Suze Orman advises buying term life insurance that's affordable, provides enough coverage to replace your income, and reviewing the policy regularly as your needs change.

Why Term Over Whole Life

Orman consistently ranks term policies as the most cost‑effective option for most people because they deliver a high death benefit for a low premium during the years you need protection most.

How Much Coverage Is Sufficient

She recommends a coverage amount that equals 10‑12 times your annual earnings, enough to cover mortgage, debts, and living expenses for dependents.

Key Features to Look For

• Level premiums that stay the same throughout the term
• Convertible option to switch to permanent insurance later
• No‑exam policies for quick approval, if you're healthy

Regular Policy Review

Orman stresses revisiting your life insurance every few years or after major life events—marriage, birth of a child, or a significant salary change—to ensure the coverage remains appropriate.

Common Pitfalls to Avoid

She warns against buying overly expensive whole‑life policies for investment purposes, and against relying on employer‑provided coverage alone, which may not be portable or sufficient.

Comparison Table