Suze Orman, self proclaimed financial expert, lumps all needs into one philosophical answer, “buy term and invest the difference”. By the way, she borrowed that phrase from AL Williams. The truth is that there are legitimate needs where term insurance is simply not the answer.

Buy term and invest the difference is a term that was used when all permanent, whether whole life or universal life policies, were “cash value” policies. An unnecesarry amount of extra premium was paid in to accumulate cash value. It was this inordinate amount that constituted the extra that AL Williams suggested investing as the difference.

Today there are permanent policies with no lapse guarantees that can offer protection that cannot be outlived without the extra burden and expense of accumulating cash value.

Again, while most needs truly are term needs, many are not. A final expense term policy or a term estate protection policy are oxymorons. The need is simply not one that is outlived and therefore term insurance is not the appropriate product, no matter what Suze says.

As the financial expert Suze Orman says, “Buy term life insurance and invest the difference.” Term life insurance is usually the least expensive form of life insurance to buy.

If you don’t pass away during the term of your policy, the life insurance expires. But, you can get term insurance with level rates and level death benefits for up to 30 years - guaranteed.

If you have financial obligations for a specific number of years, term insurance may provide the most affordable protection for your family.