‘Whole Life Insurance Is Always a Waste of Money. I’ve Never Seen One Example Where It Is Not’: Suze Orman to Caller Who Paid $18,000 and Got $6,500 Back

Shelley, a podcast caller, shared that she had paid $18,000 in premiums over 30 years for a whole life insurance policy, but only had $6,500 in cash value. Suze Orman, the guest speaker, emphasized that she has never encountered a situation where whole life insurance is not a waste of money. Orman urged Shelley to redirect the $158 quarterly premiums into a Roth IRA instead, where the same amount could have potentially grown to approximately $62,000.

Orman's advice had two exceptions: if the divorce decree legally requires the coverage or if the policyholder has a terminal illness diagnosis. Orman also suggested Shelley take the freed-up premium and invest it in her Roth IRA or a similar investment vehicle.