4 Personal Finance Areas Where Suze Orman is Spot On

Automobile Insurance - Suze Orman highlights the risk of dropping comprehensive coverage for older cars to save on premiums, warning that those reliant on their cars for daily commutes may face significant financial loss in case of disasters without insurance payouts [1] Homeowner's Insurance - Orman advises against homeowner's insurance policies that pay out based on cash value, recommending instead policies that cover replacement value to ensure adequate compensation [2] Life Insurance - Orman strongly favors Term Life insurance over Whole Life due to its higher payouts for lower premiums, suggesting that the premium savings should be invested or added to emergency savings [3][4] Credit Cards - Orman encourages the use of credit cards but emphasizes the importance of managing high-interest rates, suggesting strategies like negotiating lower rates and balance transfers to alleviate debt [8] Emergency Savings - A fundamental principle in Orman's advice is maintaining an Emergency Savings account equivalent to one's annual salary, with a focus on building this fund in manageable increments [15][19] Estate Planning - Orman discusses the importance of planning for funeral expenses and health care proxies, emphasizing the need for clear documentation to avoid ambiguity in wishes [11][12]