Why does Suze Orman hate whole life insurance?

Orman repeatedly says how much she hates whole life on her show.
I was doing a bit of research and found that Robert C. Wright who is the head of NBC Universal (Suze’s Boss) spends 506,000 dollars per year on whole life insurance. Why is it that suzes boss does not follow her advice? is it possible that this billionaire was duped by an unscrupulous insurance agent into buying this stuff? HMMM, If Suzes boss does not even follow her advice than why should anyone else? why doesnt Robert Wright just buy term and invest the difference like many on this forum, and Suze say to do. Surely he has the resources to hire a competent financial advisor. Maybe buy term and invest the difference isnt the best option.

Take at look of the facts. This is how whole life insurance works:
1) You pay level premiums for the rest of your life or until the policy expires. Majority of life insurance policies expires when you are 100 years old.
2) Your premiums are paid for 2 things: The life insurance itself and the cash value.
3) No cash value is accumulated in first 2 years. After 2 years, you will get interest between 1-3%.
4) If you wish to take money out from the cash value, you have to borrow it and pay loan interest of 6-8%.
4a) If you die and there’s a loan on the cash value, the amount of loan plus any missed premiums will be deducted from the death benefit.
4b) If you surrender the life policy and there’s a loan on the cash value, you will pay income tax on the amount borrowed.
5) If you die someday, the insurance company keeps the cash value.

As you can see, cash value is a rip off. It has slow growth and I could do much better by investing the difference or saving it in money markets. If whole life didn’t build cash value, it would be called Level Term to Age 100 and it would be cheaper too.

I have always sold term insurance and help clients invest the difference (or help them start investing). Its the best financial plan because term insurance provides adequate amount of coverage for low amount of premiums. At the same time, the client is building wealth for retirement. When term insurance expires, the client would need to evaluate their financial needs. In theory, most people don’t need life insurance forever. As they get older, their financial obligations decrease and their savings goes up, so the need for life insurance is low. If my client still needs life insurance when the term expires, my client can either renew it without having to provide proof of insurability or they can exchange it for another term policy.

Suze Orman gives advice on Adjustable Rate Mortgages