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.
When the new “Universal Term” type life insurance plans were initially introduced, both Dave and I were very cautious and carefully researched these plans, their contracts, and the benefits they would provide for Dave’s listeners. Over time, more and more life insurance companies began to offer this type of policy, which created more exposure and opportunities to save money on the cost of life insurance. Though a universal term type plan is written on a universal life policy contract, there is very little functional difference between a term life plan and these new universal term policies. Numerous life insurance companies have introduced these new “universal/term” plans to compete in the term life insurance marketplace. These programs are built to resemble and function similar to term life plans and compete with their low costs. They offer guaranteed level premiums (10, 15, 20, and 30 years), guaranteed death benefit, increased flexibility, and have rates, in many cases, lower than other companies’ term life plans.
We only offer plans that comply with the criteria that Dave recommends to his listeners. Dave has carefully reviewed these new “universal term” plans and determined that they are a valuable alternative, when priced competitively, and should be considered as they offer “low cost protection” similar to traditional term life plans. This does not change, in any way, his opinion of never using a life insurance policy as a savings or investment tool. here. Learn more about the benefits of term life insurance.
For more than 20 years, Dave Ramsey has endorsed us for term life, disability insurance, and ID theft protection, and uses us for his personal and business insurance needs. He has no ownership interest in our company and is not compensated based on the sales or success of our company. He is very protective of his listeners and holds all of his advertisers to the highest standard.
YES! Dave feels very strongly that everyone who is reliant upon their income for maintaining their lifestyle needs to have long-term disability insurance, regardless of where you are in your financial journey, whether you are married or single. Dave does not include disability insurance in the Baby Step process since each household has different situations to address. His advice is that if your loss of income due to a disability would cause financial hardship for your family, you need disability insurance. As you get out of debt, you are reducing the amount of insurance you need – that means your peak time for protection is when your family is in debt and less capable of maintaining their lifestyle if faced with the loss of an income. The establishment of an emergency fund equal to 3-6 months of your expenses is a protective measure to use for short-term risks, allowing you to concentrate your dollars on long-term plans that cover you for five years or longer to protect against bigger risks. Remember to always check with your employer for access to a group plan since these are often the most affordable options available.
Most term life plans are guaranteed renewable to age 90 or older, so they don’t really expire. However, once the level premium period expires, the cost of the policy increases substantially on a yearly basis. The reason term life insurance is still the better option is because of the affordability and flexibility provided by the term you select and the other financial accomplishments that can be achieved during this time period. The basic premise for cash-value plans (Whole Life, Universal and Variable Life and Return of Premium 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, then you avoid this over-payment period and use the savings to attack debt and to build savings. The insurance industry has convinced the public that you have to have life insurance for your whole life – but that’s simply not true! You only need life insurance when your death would cause your family financial hardship. By the time a 15, 20, or 30-year term policy expires, it is likely that you will no longer have a need for life insurance anyway. Learn more about the benefits of term life insurance.
Credit Monitoring and other identity monitoring programs focus strictly on financial fraud, and these measures have been proven to have limited preventative benefit since many lenders never check credit bureaus or other outlets before issuing credit. If any other type of identity theft occurs, these plans don’t provide any protection. Taking preventative measures is important, but they are not a foolproof, and you can do most of these steps yourself for free, so there is no reason to pay for these services. You can place your own fraud alerts and credit freezes and enroll in “Do Not Call” and “credit card opt-Out” programs, all for no cost. You can also order copies of your credit reports three times per year at no cost. These are the steps that Dave recommends to reduce your risk without spending a penny more for hype, so your money can be used for better things, such as paying down debt and building savings.
Dave endorses Zander ID Theft Solutions – and uses us for his own family and teammates – because of our focus on the true risk of identity theft: the time and effort it takes to clean up the mess. We cover all types of identity theft, meaning that no matter how a thief accesses your information, we have your back. We take over the work (600 hours on average) to restore your identity to pre-theft status, and we’re less expensive than our competitors. Our $1 million reimbursement benefit covers unauthorized stolen funds from bank accounts and provides compensation to our members if they incur expenses while we restore your identity. These expenses may include lost pay or vacation time (if you have to go to court to testify), legal fees, notary or Fed-Ex charges, long-distance phone bills, etc. Learn more about the risk of identity theft.
The smartest and most cost-effective way to protect yourself against identity theft is to combine components of prevention with full-service restoration. No plan can genuinely guarantee full prevention of ID theft, so we have integrated the tools that help reduce your risk while providing critical restoration services. Our team of certified recovery specialists take over all the work to restore your identity to pre-theft status if you become victimized by this time-consuming, expensive and nightmarish event – regardless of the expense or length of time it takes.
Our prevention services start with personal information monitoring, which searches the web and other databases to alert you if your information is being misused. We also provide online cybersecurity services such as VPN (virtual private network) and Antivirus software that allow you to browse the web, stream content, shop, and bank online with encrypted protection. Safeguarding and limiting access to your information is a key step in reducing your risk of becoming a victim.
Our restoration services cover all types of ID theft – whether it’s financial fraud, Social Security or unemployment fraud, medical ID theft, tax refund fraud, medical ID theft, crimes committed in your name, home title fraud…the list goes on. We provide white-glove service and take over the work to restore your identity as quickly as possible so that the impact on your daily life is minimal.
Additionally, our members receive $1,000,000 ($2,000,000 on family plans) in stolen funds and expense reimbursement protection, which includes legal fees, lost wages, and more. We also provide coverage for any two adults on our family plan and children are protected for free – which is especially important, as children are among the most vulnerable to identity theft. Lastly, we provide 24/7/365 U.S.-based support to help you review your credit reports and access other free services such as credit card opt-out, do-not-call lists, placing fraud alerts, freezing your credit, and more.
Overall, we have developed the most thorough and affordable plan that helps reduce your risk of falling victim to identity theft. As a member of Zander Identity Theft Solutions, if you do become a victim, you get immediate and effective help from a team you can trust to resolve the problem and limit the hassles created by ID theft. That is why ours is the only plan Dave Ramsey has ever recommended and uses for his family and all his team members. Check out our plans here or call us toll-free at 1.888.210.3274.
When looking for competitive home insurance rates, it is best to work with an independent insurance agent who represents numerous companies. Agents who work for companies such as State Farm, Allstate, Farmers, Nationwide, etc. are called direct writers and can only represent that one company, meaning they are limited in the pricing and coverage they can offer.
An independent agent, like Zander, has the flexibility to shop a wider range of companies to find the best options.
Our team works for you to and no one else, assisting you in finding the best value on home insurance and providing you with year-round white-glove service and attention. We review your coverage every year to make sure you’re always getting the most affordable rates possible, and your personal claims liaision will work on your behalf to ensure you get a quick and fair resolution in a claims situation.
When searching for affordable home insurance options, having an agent that works on your behalf is crucial to getting the coverage that fits your life and needs. Find your best rates by visiting our home insurance page or calling 800-356-1780 and let us work for you.
An independent agent, like Zander, can help you find the most competitive rates on auto insurance. Independent agents are not bound to a specific company, allowing them to shop prices from multiple companies, which can pay off big time for you as a consumer. They can also aid in determining the appropriate coverages a client may need based on their personal circumstances.
At Zander Insurance, we are an independent agent like no other. We work for you and no one else, comparing rates for dozens of top insurance companies to help you find the best value on auto insurance. But, unlike many online quote services or one-company agents, our commitment to service doesn’t stop there. We continue to review and compare options for you on an annual basis, saving you time and money and making sure your rates stay competitive year after year. We also work for you throughout the year by handling your questions, changes, and any concerns so that we keep your life simple and hassle free. We even have a personal claims liaison that helps make sure that all claims are paid quickly and fairly.
When searching for affordable auto insurance options, having an agent that works on your behalf is crucial to getting the coverage that fits your life and needs. Find your best rates by visiting our auto insurance page or calling 800-356-1780 and let us work for you.
Dave typically recommends a minimum of $100,000 of protection for all operators. Many states may require less than that, but the cost difference is very small between these lower amounts and the level Dave recommends, which offers greater protection. The thing to remember is that your greatest risk is the liability exposure when you or a family member are operating an automobile. Even with limited assets, your future earnings could be garnished from a lawsuit, making the cost of the higher liability limits worth the added protection. Dave recommends taking a higher deductible on your comprehensive and collision and using your emergency fund to cover the higher deductible if a claim does occur. Raising your limits to even higher levels may also be advisable, depending on your personal assets and other exposures. It is generally recommended to carry an amount of liability insurance equal to or greater than the value of your home.
If you’re thinking of increasing your limits, switching auto insurance – you might just save enough to cover the costs of your added coverage!
To determine whether to carry full coverage or liability only, consider the cost of the insurance (broken down by liability and physical damage) and whether or not you have money in your emergency fund to replace the vehicle if totaled, stolen, or damaged. Most of the time, the savings for dropping the comp/collision is fairly small, and Dave recommends keeping it in place if the car is crucial to your household income and you don’t have the money to replace it. Remember, carrying the appropriate level of liability insurance is the most important issue since your greatest risk to your personal assets is usually operating a vehicle. Get a free, instant quote to see how affordable auto insurance can be.