There’s a lot of buzz around life insurance advice these days. High-profile financial personalities, like Dave Ramsey and Suze Orman, insist that term life insurance is the only smart choice. Whole life, they claim, is expensive and often a “rip-off.” But what they don’t discuss — and often cannot — is what happens in the real world when families rely solely on mass-market ideology.
Before you make a decision based on celebrity advice, it’s important to understand that these personalities are financial entertainers, not licensed life insurance agents. They do not see the daily realities of policy expirations, health changes, or families facing financial crises when coverage lapses unexpectedly. This article aims to provide perspective from someone who has spent nearly two decades working with real clients and understanding the nuances of life insurance solutions.
Let’s start with the basics. Term life insurance provides coverage for a defined period — 10, 20, or 30 years, for example. Once the term expires, so does the coverage, unless you renew or convert it. Whole life and other permanent policies, on the other hand, offer lifelong protection with a guaranteed death benefit and, in many cases, cash value accumulation.
Ramsey and Orman make sweeping statements: “Buy term and invest the rest.” While this can work for some investors, it assumes perfect market performance, disciplined investing, and that the insured never faces a health change that could make obtaining new coverage impossible. In real life, things often do not go according to plan.
Suze Orman Life Insurance – Term Life, The One-Trick Pony
Consider this example video, which illustrates the limitations of relying on celebrity advice alone. Suze Orman’s recommendation comes across as overconfident and based on limited information from the policy owner.
The problem is that advice like this assumes everyone has the same risk tolerance, financial discipline, and market timing. It also assumes term insurance alone will always protect families — which is simply not true. Life insurance is meant to transfer risk, not assume it, and blindly following ideology can leave loved ones vulnerable.
At Special Risk Life, we don’t subscribe to either extreme — term only or whole life only. Our approach is to analyze each client’s goals, age, health, and risk tolerance, then present options that align with their unique situation. This is the key difference between individualized guidance and generic celebrity advice.
The Real-World Risks of Term Life Insurance
Term insurance is valuable, but its limitations can create real problems. Consider a 65-year-old whose term policy has expired. If their health has declined, obtaining new coverage may be difficult or impossible. Families may be left covering funeral expenses, debts, or other obligations that the term policy was supposed to protect against. This scenario is often overlooked by mass-market financial gurus.
Similarly, many people invest the difference in a 401(k) or other accounts assuming the market will perform consistently. When a downturn occurs, those funds may be insufficient to cover expenses, leaving the family at risk. Permanent life insurance provides a guaranteed benefit regardless of market fluctuations — offering security that term plus investing cannot replicate.
It is critical to remember: mass-market ideology cannot replace individualized experience. Many licensed agents do not see enough real-life scenarios to provide meaningful advice. It takes years of experience to recognize the consequences of expired term policies or poor investment timing. That is what sets professional guidance apart.
The Purpose of Whole Life and Permanent Life Insurance
Whole life insurance is often misunderstood. It is not an investment — it is a guaranteed financial vehicle designed to provide lifelong protection. Cash value accumulates and benefits never decrease as long as premiums are paid. Unlike investments, there is no market risk. You may borrow from your policy or leverage the cash value, but the primary intent is protection.
Permanent insurance is particularly valuable for individuals who are risk-averse, estate planning, funding life insurance trusts, charitable giving, or covering final expenses. It provides certainty in a world where investments and term policies carry risks that can materialize at the wrong time.
Even if permanent policies are more expensive upfront, the guarantees they provide can save families from financial hardship later. Term insurance may be cheaper, but it comes with the risk of expiration, rising premiums upon renewal, and potential gaps in coverage when it is needed most.
Alternative Permanent Solutions: Universal Life and Guaranteed Universal Life
Newer permanent products like Indexed Universal Life Insurance and Guaranteed Universal Life offer permanent coverage with lower premiums than traditional whole life. These policies can serve estate planning, charitable giving, and other long-term protection needs without the higher cost of a participating whole life policy.
We guide clients through the spectrum of options, comparing term, whole life, and these newer permanent policies. The goal is not to sell ideology but to match coverage to your personal situation, budget, and risk tolerance.
Why You Should Consult a Professional
Blindly following celebrity advice can leave families vulnerable. Consulting an experienced, independent insurance agent ensures your coverage aligns with your life stage, health, and financial goals. Agents can explain the real risks of term expiration, market downturns, and permanent policy costs, helping you make informed decisions.
Life insurance is about transferring risk and protecting your loved ones. It’s not a short-term investment strategy. Our approach is to help you evaluate your acceptable level of risk, choose the right product, and ensure your protection is in place when your family needs it most.
Even if you do not need permanent coverage today, understanding its benefits helps you plan for the future. Many clients start with a combination of term and permanent coverage, or select guaranteed universal life policies that provide lifelong protection at an affordable rate.
Subtle guidance from a licensed professional can prevent costly mistakes, such as allowing term policies to lapse, relying solely on volatile investments, or underestimating future financial needs. A personalized approach considers the whole picture — your goals, resources, and what you want to protect for your family.
The takeaway here –
Never, never mix life insurance with investments!! Life insurance is financial protection. Investments are to grow your money, not protect it.
How long do you actually need coverage? Is it temporary or permanent or a little of both?
Hopefully you have a better understanding of why certain permanent products do cost a lot more for the same amount of coverage. Maybe those who do not want or need permanent coverage consider it a ripoff. Again, it is about values first and foremost.
As stated previously, there are newer permanent products that are starting to make Whole Life outdated, but there are still benefits in a good participating whole life policy that are worthwhile to the right person. The key to a permanent policy and its value…you must die while the policy is in force. You do not take out permanent coverage and cancel it ten years later. Bad move. You are paying to ensure the protection is there when it is needed.
People who cancel their permanent life insurance policies have lost out on the guaranteed death benefits the policy will be paying the beneficiary. Never take out a policy you cannot afford to keep for the coverage period, either term or permanent. It does not do any good if you cancel it and then pass away if a considerably cheaper policy was available you could afford upfront.
Having the right coverage for your situation comes down to finding a seasoned, independent insurance agent/broker that makes recommendations based on your specific needs, not pushing their own agenda. Financial entertainers may not share your ideology, values or risk tolerances. Remember that.
It takes a good needs analysis and your input on what you are trying to achieve before application time. Maybe you’re better off with a simple 20 year term policy, or maybe a term policy combined with a whole life policy etc. No Lapse, Guaranteed Universal Life Policies are becoming more popular and may provide an excellent permanent alternative to the more traditional whole life insurance. They do not have any cash value, but have much lower rates.
Don’t get sucked into the one size fits all, cheap term life mentality. Term life insurance versus whole life insurance coverage, well that is apples versus oranges. There is a reason the companies and reputable independent agents market all these types of coverage. People need and want professionals to deliver personal, financial peace of mind specific for them. You do not need to have approval of those who do not know your personal situation and values. Enough said there.
Frequently Asked Questions
What is the difference between term life and whole life insurance?
Can I combine term and permanent insurance?
Is permanent life insurance a good investment?
What happens if a term life policy expires?
What should I consider before choosing term or a whole life policy?
Should I seek professional guidance before making a life insurance choice?
If you would like to discuss your situation with us, we will be here to help you sort it out. Many people just do not need permanent coverage; it just depends on where you are in life and what your personal goals are. With us, honest answers are what you get, not just canned ideology. Give us a call for the fastest service, 269-230-3464. An email is always welcome if you are more comfortable along that route.
Oh, and feel free to leave comments below.
Michael is a veteran independent life and health insurance agent who specializes in guiding people with even high risk health conditions thru the insurance process. He is passionate about helping individuals and families get their unique financial protection needs met, providing his experienced based advise and delivering affordable, dependable coverage you can count on.