Dave Ramsey on Insurance

Dave Ramsey is a financial expert, radio host, and author who is well known for his views on personal finance. He has helped many people achieve financial stability through his advice on debt reduction, budgeting, and saving. One area where he has strong opinions is insurance.

Ramsey believes that insurance is an important tool for managing financial risk. However, he is also an advocate for minimalist insurance coverage. He suggests that people focus on the most essential types of insurance, such as health, auto, and home insurance, and avoid buying unnecessary policies, such as whole life insurance.

He also recommends having high deductibles on insurance policies. This reduces the cost of insurance premiums, freeing up money for other financial priorities, such as paying off debt or saving for retirement.

When it comes to health insurance, Ramsey believes in the importance of having a high-deductible health plan (HDHP) combined with a health savings account (HSA). This type of coverage allows individuals to save money tax-free to pay for medical expenses. According to Ramsey, having a HDHP and HSA can help people avoid the high costs of traditional health insurance plans, and still have the protection they need in case of an unexpected medical event.

Ramsey also suggests shopping around for insurance to find the best coverage and price. He encourages people to compare policies from different insurance companies and make informed decisions based on their specific needs.

In conclusion, Dave Ramsey views insurance as an essential tool for managing financial risk. However, he believes in having minimalist coverage, choosing high deductible plans, and shopping around for the best policy. By following these principles, individuals can protect themselves from financial loss while also freeing up money for other financial priorities.

Receive a term-life insurance estimate in under 30-seconds from a local Texas agent.