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For over 20 years I have worked personally with Dave Ramsey, his listeners and team members to help them make important and informed decisions about their insurance needs and the most cost effective ways to address them. Through the years I have responded to over 10,000 of Dave’s listeners regarding their insurance questions.

This blog contains many of the most frequent questions and answers since they provide an excellent resource to Dave's specific advice on very specific insurance questions. I hope you find this information to be a valuable resource that you can refer to many times in the future as you progress along your financial path. Click on the category noted which relates to your question so that you can see the posting currently available. If you do not see your question or still have concerns please don't hesitate to use the "Question Widget" noted on this site for further information or call us toll free at (800) 356-4282.

Many people are surprised that the advice from Dave and I doesn’t always involve the purchase of insurance as the only alternative. Insurance is a key component of any family's financial plan but it can also be a drain and a detriment if the wrong plans are purchased. Implementing the plans and approaches that Dave and I recommend, most importantly, the establishment of an emergency fund, will help reduce a families overall insurance costs and allow them to focus their dollars on more important things such as getting out of debt and growing wealth.

− Jeff Zander

Purchasing Life Insurance for a Dependent with Special Needs

2019 June 10
 
by zanderins

Many families with special needs dependents consider using term life insurance in conjunction with a special needs trust. The special needs trust would be, in many cases, established by your will, funded initially by a term life policy. There is sometimes an argument of whether to buy a term life policy or cash value life insurance, and Dave still feels that term life is the only way to go. The basic premise for cash value plans is that you will need life insurance your whole life, so the plans overcharge you in the early years to pay the higher costs in the later years. Dave’s opinion is that, if you buy term life insurance, you avoid this overpayment period and use the savings to attack debt and to build savings. With 15 or 20-year level term insurance you have time to eliminate your debt and grow your savings so you no longer need life insurance.

 

Determining the amount of coverage would be similar to the regular process he discusses, in that you need to measure the amount of funds that would be needed to support your dependent per year and then multiply that amount (typically by 10) to represent the amount of coverage to purchase.  For example, if they needed $30k a year to maintain their assistance and address future needs, then an amount of $300k in life insurance (which invested at 10%) would generate those needed funds.  Some people utilize a lower interest rate return, which would increase the multiple of used.  Since Term life is so much cheaper than a cash value plan you would be investing/savings the difference for the 20 or 30 year period of the life insurance so, at the policy expiry, the savings is now used to address their ongoing needs.

Is There a Benefit to Having Policies with Different Term Lengths?

2019 March 15
 
by zanderins

“Laddering” policies is a common strategy, as many people anticipate needing less life insurance as they get older and are further along in their debt-free journey. This is where the Insured staggers policies at varying term lengths to cover specific needs, and is especially helpful if you have major financial obligations that end at different times. The face amount for each policy would reflect the amount of money needed to pay off a specific obligation. For instance, an Insured may have one 15-year policy to cover their mortgage, and a 20 or 30-year policy related to other needs such as income replacement until retirement and education expenses for their children.
An additional benefit to laddering policies is the potential cost savings over buying one long-term policy with a high amount of coverage, as shorter term periods result in lower premiums.

Can I Have Multiple Life Insurance Policies at the Same Time?

2019 March 15
 
by zanderins

Yes, you can.  However, it is important to understand that the total amount of coverage that you have in place or are applying for must be justifiable based on your income and net worth. If you already have a significant amount of insurance in place and apply for another policy, the insurance company could limit the amount for which you are approved in order to keep you from being over insured. Remember, Dave recommends having 10-12 times your annual income in term life coverage, whether it is in one policy or split between multiple policies.

What Coverages are Available to Children on Zander’s ID Theft Protection Plan?

2018 December 11
 
by zanderins

When a child is added to a Family plan with Zander, they will receive the same benefits offered to their parents up to the age of 18. After that point, they are still eligible for lost wallet protection, restoration and recovery services until age 26 as long as they can still be claimed as a dependent by their parents.

Federal law restricts our ability to offer personal information monitoring for those over the age of 18 without their consent. However, the child would have the option to enroll in an individual plan on their own, allowing them to take advantage of the full breadth of our services.

What is Home Title Fraud and is it Covered by Zander’s ID Theft Protection Plan?

2018 December 11
 
by zanderins

Home title fraud is a prevalent and terrifying form of identity theft. Cyber thieves target homeowners by scouring electronic records for homes that have accrued equity, then file the appropriate paperwork to change the ownership of the home to themselves. They use your equity to take out large personal loans in your name – they can even sell your home without your knowledge. Most people are not aware that title theft has occurred until they receive foreclosure notices in the mail.

This form of identity theft is covered by the Zander Identity Theft Solutions plan. While there are other plans out there that offer protection against home title fraud specifically, there is no need to purchase a separate program. If you are a victim of home title fraud and a member of Zander ID Theft Solutions, our restoration and recovery agents will help you restore your identity to pre-theft status.

Q: Are Credit Freezes Useful in Preventing ID Theft?

2018 September 27

The primary function of a credit freeze is to stop any access to your credit report, and they can be a very valuable tool to help protect you from identity theft. However, while they might seem like an ideal (even easy) way to combat identity theft as a stand-alone defense, many people overlook several factors regarding their effectiveness and convenience.

First, your credit is accessed more often than you think. If you place a freeze on your credit report, then every time you sign up for utilities, activate new cell phone service, or apply for insurance, you would have to “unfreeze” your credit, which could take up to 48 hours. Then you have to go through the trouble of placing the freeze again after each transaction. It’s not exactly a convenient process.

Additionally, the risk of identity theft goes far beyond your credit – in fact, only about 21% of ID theft is credit-related. Thieves are finding new ways to exploit your information in unique and terrifying ways, like medical ID theft, employment fraud, utilities fraud, Social Security Fraud, and more. None of these types of fraud are credit related, and would therefore not be thwarted by a credit freeze.

That’s why Dave Ramsey recommends Zander ID Theft Solutions even if you place a freeze on your credit. Because Zander covers all types of identity theft, as well as acts of crime committed in your name, our plan is the most comprehensive in the industry. Not only does our program take over the work to make sure your identity is restored to its pre-theft status, it’s also the most affordable plan on the market. For these reasons and more, we’ve earned Dave’s trust and his business – our plan is the only one he uses for his family and his team members.

Q: What is Life Insurance Awareness Month?

2018 September 25
 

September is Life Insurance Awareness Month, and a good time to make sure you have the right life insurance coverage to ensure your loved ones are protected.

Studies continue to show many Americans are woefully uninsured. According to the Life Insurance and Market Research Association (LIMRA), 30 percent of households––roughly 37.5 million people––do not have life insurance, and approximately 50 million households recognize they need more life insurance.

Tragedy can strike in many forms and without a moment’s notice. Leaving yourself and your family uninsured and unprotected only compounds the profound loss of a loved one.

Andrea Pirtle in Nashville came to this very realization when tragedy struck her family. When her son was just five weeks old, Andrea’s husband passed away suddenly with no life insurance. As a newly single-income household, Andrea was left to face not only the heartbreak of that devastating loss but also the overwhelming expenses of her husband’s funeral, the medical expenses, costs associated with raising a child, their ongoing house payments, and more. The combination of this emotional and financial stress was debilitating, and Andrea now champions the importance of life insurance in protecting your loved ones.

Assessing your life insurance needs is a small investment of time to prevent months and possibly years of unnecessary struggle for your loved ones.

Depending on your life stage, your life insurance policy needs may change over time. A checkup every few years is worth the time.

Your life insurance policy should provide the financial amount your family would need to supplement the loss of your salary––keeping in mind mortgage payments, any outstanding debts and future needs like funeral and college costs. Shop around for rates––don’t stop with the first quote you receive but compare options to make sure you are choosing a policy that gives you the lowest rate for the coverage you need.

This Life Insurance Awareness Month, take a moment to ask yourself––if something were to happen to you, is your family protected? If your answer is no, it’s time to decide today to guarantee you and your loved ones a better, safer and more peaceful tomorrow.

For more information, visit our term life insurance web page.

 

Life Insurance Awareness Month #LIAM

2018 September 25
 
by zanderins

September is Life Insurance Awareness Month, and a good time to make sure you have the right coverage to ensure your loved ones are protected.

 

Studies continue to show many Americans are woefully uninsured. According to the Life Insurance and Market Research Association (LIMRA), 30 percent of households––roughly 37.5 million people––do not have life insurance, and approximately 50 million households recognize they need more life insurance.

 

Tragedy can strike in many forms and without a moment’s notice. Leaving yourself and your family uninsured and unprotected only compounds the profound loss of a loved one.

 

Andrea Pirtle in Nashville came to this very realization when tragedy struck her family. When her son was just five weeks old, Andrea’s husband passed away suddenly with no life insurance. As a newly single-income household, Andrea was left to face not only the heartbreak of that devastating loss but also the overwhelming expenses of her husband’s funeral, the medical expenses, costs associated with raising a child, their ongoing house payments, and more. The combination of this emotional and financial stress was debilitating, and Andrea now champions the importance of life insurance in protecting your loved ones.

 

Assessing your life insurance needs is a small investment of time to prevent months and possibly years of unnecessary struggle for your loved ones.

 

Depending on your life stage, your life insurance policy needs may change over time. A checkup every few years is worth the time.

 

Your life insurance policy should provide the financial amount your family would need to supplement the loss of your salary––keeping in mind mortgage payments, any outstanding debts and future needs like funeral and college costs. Shop around for rates––don’t stop with the first quote you receive but compare options to make sure you are choosing a policy that gives you the lowest rate for the coverage you need.

 

This Life Insurance Awareness Month, take a moment to ask yourself––if something were to happen to you, is your family protected? If your answer is no, it’s time to decide today to guarantee you and your loved ones a better, safer and more peaceful tomorrow.

 

For more information, visit our term life insurance web page.

Q: What is the Supplemental Disability Income Rider (SDIR) on a Disability Policy?

2018 July 3
 
by zanderins

The SDIR acts as an offset and actually helps reduce your cost, taking part of your benefit amount and discounting the cost since it will integrate with social programs such as Social Security and workers compensation. If you qualify for payment under a social plan, then the insurance company will reduce the amount paid to you by the amount of monthly benefit you receive from the social program. For example, let’s say you have a disability benefit of $7200 and $1800 with your SDIR. You are guaranteed to get the total monthly benefit of $9000, but the $1800 SDIR may not all come from the insurance company. If you receive Social Security or workers comp payments, your rider will simply “top off” those payments to get you to $1800 in benefit. The real advantage is that, even if you don’t receive Social Security or workers comp for your disability, you will still get that entire $1800 SDIR benefit in addition to the $7200 disability benefit.
Long Term Disability (LTD) is a crucial part of your overall insurance plan and many companies will try and load you up with benefits since they sell one product at a time and do not take an overall view of your financial strategy. Dave recommends that you have quality LTD plan without overspending on it, since it that would dilute your ability to pay down debt and grow your savings. You also need to remember that you chance of disability is still limited so it is important to balance the expense with other priorities, such as term life insurance, health insurance, retirement plans, etc.

Q: What is the Own Occupation Rider on a Disability Policy and Do I Need It?

2018 July 3
 
by zanderins

The Own Occupation rider is a nice benefit to have, but not crucial depending on your line of work and budget. Many people who work in non-specialty fields overpay for this benefit since there are few disabilities (outside of the most severe) that would limit you from performing the principal duties of most occupations. This rider was primarily marketed to specialty physicians when it was introduced, and the experience has gone poorly for the insurance companies.
With Zander’s disability plans, the Own Occupation rider is offered as an optional benefit; Dave typically only recommends it based on the room in your budget and where you are in the “Baby Steps.” However, Dave would not recommend spending money on it if you do not have your Emergency Fund established and are still struggling with debt – it is not a priority over those issues. With older policies, the Own Occupation rider may already be included. If this is the case for you, unless you are finding a plan with similar coverage or your budget has gotten really tight and you need to remove the rider to fund other priorities, consider keeping what you have.