When it comes to financial advice, it’s essential to trust the experts in the field. In a recent episode of “Ask KT and Suze Anything,” personal finance guru Suze Orman raised some eyebrows by critiquing a 72-year-old caller’s financial advisor for suggesting a questionable insurance policy switch. Here’s what went down during the podcast.
Suze Orman is a renowned author and financial advisor known for her no-nonsense approach to money matters. During the “Ask KT and Suze Anything” podcast, which covers a wide range of financial topics, Orman had a conversation with Judy, a 72-year-old retiree.
Judy explained that she was managing her finances well and had recently met with her financial advisor. During their meeting, Judy mentioned that she had paid off her MetLife policy, which had a value of $16,000 and a death benefit of $26,000. She also disclosed that she did not have long-term insurance. In response, her financial advisor suggested swapping her policy for a long-term care policy, which left Judy feeling confused. She had always believed that the policy was meant to cover burial expenses and was unsure about the wisdom of making the switch.
Orman didn’t mince words in her response to Judy’s situation. She pointed out that converting policies like Judy’s can be costly, with potentially hidden fees and increased premiums. Additionally, Orman highlighted the fact that Judy’s desire to have the policy cover burial expenses meant she might not have adequate savings for that purpose if she made the switch. Moreover, as people age, the cost of long-term care insurance tends to rise, making it a pricey option for many seniors.
In light of these factors, Orman advised Judy against following her financial advisor’s recommendation. Instead, she suggested that Judy might qualify for Medicaid if she needed nursing home care in the future, making the additional expense of a long-term care policy unnecessary. Orman also recommended consulting with long-term care insurance expert Phyllis Shelton through the “Women & Money” app before making any final decisions.
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