Suze Orman advises readers to buy life insurance only if they have dependents to provide for. Her website recommends term life insurance if the goal is to cover a specific need or time period.
Life insurance is meant to provide for family members who rely on the policy holder's income in the event of his or her death. Permanent life insurance, such as a whole-life policy, is in place until the policy holder dies and pays out a fixed amount at that time. Suze Orman recommends this type of policy if the client anticipates needing to provide for a dependent indefinitely; this option suits a dependent with a significant disability.
Term life insurance remains in effect for a set amount of time -- often 10 or 20 years -- and pays a benefit only if the policy holder dies during that time. This type of plan is ideal if a client wants to provide for specific needs, such as making sure that dependent(s) can pay off a mortgage or attend college. A term life insurance policy with a death benefit equal to at least 20 times a beneficiaries' yearly needs ensures that they can live comfortably off of interest income. Suze Orman recommends shopping for term life insurance at SelectQuote.com, and choosing a plan with annual premiums that do not increase and that are guaranteed renewable.