What Insurance Does
Dave Ramsey Recommend?
Dave Ramsey has recommended Zander Insurance for over 20 years –
but what coverages does he recommend? Insurance is intended to cover those risks that you can’t handle financially, and in some cases, the cost of insurance is so low there’s no reason to go without it.
Below we have highlighted the core types of insurance that Dave feels need to be considered and the circumstances where they apply to you.
I recommend Zander Insurance from experience. I know they are a principled, debt free company offering insurance programs directly in line with my recommendations.
- Dave Ramsey
Term Life Insurance
Term life insurance provides financial protection to families for a specific timeframe, often ranging from 10 to 30 years. The basis of term life insurance is simple: if you die while the policy is in place, your family will receive a payout of necessary funds to help them eliminate any debts and maintain their lifestyle. Unlike other types of policies like whole, universal, and variable life insurance, term life insurance is more simple, affordable, and accessible.
Start a QuoteLong-term Disability Insurance
A disabling event can cause significant financial loss for families, making a long-term disability insurance policy a critical part of your financial plan. Dave recommends 60 to 70 percent of your monthly income in coverage. In addition, select the longest elimination period possible (90 days is average, but opt for 180 days if you have ample savings) and a benefit period of at least 5 years (to-age-65 if you can afford it). If long-term disability is available through your employer, Dave recommends tapping into that source for affordability, since it is usually more cost-effective than purchasing a separate policy.
Start a QuoteAuto Insurance
Auto insurance is a necessary investment to protect your modes of transportation – in most states, it’s required. Dave recommends choosing the highest level deductible possible based on your emergency fund. Be sure to choose at least $500,000 in property damage, liability, and bodily injury liability. When possible, it may also be ideal to purchase full comprehensive and collision insurance if you have a newer vehicle.
Start a QuoteHomeowners Insurance
Protecting your biggest investment is key, and homeowners insurance is a big part of that, especially if your mortgage company requires it (and virtually everyone does). Dave recommends selecting a higher deductible for your homeowner's insurance to help keep your premiums low. It is also important to consider a policy offering guaranteed or extended replacement cost policy to help you to rebuild after a significant loss.
Start a QuoteIdentity Theft Protection
In a digital age, having ID theft protection is a big part of navigating financial security. Dave recommends that everyone have ID theft protection, especially one that provides comprehensive restoration services. That allows the professionals to cover your losses should something happen. Look for a plan that offers white-glove service, at least $1 million in stolen funds and reimbursement protection, and free protection for your children.
Get ProtectedHealth Insurance
Dave recommends purchasing health insurance through your employer when possible to keep costs low. Compare options to find the best coverage for your needs. Choose a plan with a Health Savings Account to help you to put money away with tax benefits to cover medical costs. Look for a policy that does not have co-pays but has a high deductible.
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