Dave Ramsey Financial Peace University Review: Week 7

Class this week was about insurance. You could hear the groans and sighs around the auditorium. Insurance is boring and it isn’t fun. Plus, I think people don’t like to talk about it because it means thinking about your mortality (in the case of life insurance), catastrophe (home and auto insurance), illness (health, long term care, and disability insurance), and all the ways you could be sued (umbrella insurance). None of these are fun topics and most people shy away from them as long as possible. Which is part of the problem.

Dave points out that insurance is every bit as vital to your financial well being as having emergency funds and being debt free. It does you no good to be

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6 Responses to Dave Ramsey Financial Peace University Review: Week 7

  1. One correction/additional piece of information: The identity theft insurance that Ramsey recommends does not monitor your credit. It falls in line with his whole thing of personal responsibility. They do prompt you to pull your own credit three times a year. After all, shouldn’t you know what’s on your report, not some company? I know that you are technically correct about liability in these situations and this insurance may not be a necessity. But I know people who have had their identities stolen and it sounds like a nightmare. I’m willing to pay $140.00 a year for our family to have a little peace of mind. I know this insurance will not keep the theft from occurring, but it will make the clean up a lot easier. BTW, if anyone reading this has LifeLock, check the FTC website and find out what a rip that company is.

  2. Pingback: Dave Ramsey Financial Peace University Review: Week 10 - Saving Advice

  3. GregOlney says:

    Their are some better programs out there, but you have to be willing to put in the research.

  4. Pingback: Dave Ramsey Financial Peace University Review: Week 12 - Saving Advice

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  6. cfpgal says:

    I’m new to your blog and just by chance ended up on this FPU series from a few months ago. This would be a PFU 201 level topic but you and your husband may want to read up on long-term care insurance. It’s not cheap but just based on what I’ve read here you guys may be good candidates for it. The odds are fairly high that you or your husband will need care at some point.

    Dying slowly in America is more of a financial risk to most families than dying unexpectedly. I have first-hand experience with couples who have dealt with a nursing home stay and it’s financially devastating. The average facility near a metropolitan area runs $5-7k+ per MONTH. Add that to your usual household expenses and your life savings will go up in smoke pretty fast. Most have no choice but to spend down assets and go on medicaid which means you lose some control over the facility you’re in and your spouse will have to sacrifice his/her financial security as well.

    Take a look and see if it makes sense for you. Just research research research. These policies can have a lot of moving parts. If you think it makes sense for you I usually recommend people shop for it in their 50’s- or even your 40’s depending on your family medical history.

    P.S. I am a planner not an insurance agent and have no incentive for bringing this up. Just trying to help on your quest for knowledge.

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