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.
Exam-free policy options are more prevalent now than ever before and can be just as affordable as exam-required coverage! However, applying without an exam is dependent on the insurance company with which you apply and can be limited by the amount of coverage you select, your age, and your current health status.
Dave recommends 10-12 times your income in life insurance coverage so, if you need more than what is allowable to go exam-free, you may need to opt for a policy with the traditional exam. He does not recommend paying more to avoid the exam unless the price difference is minimal or there are other reasons to incur a higher cost over the time frame of the policy.
You can easily find out if an exam-free policy are available to you by visiting our website. Once you complete the quick online quote, the companies offering an exam-free option will be clearly designated in your results. You are also welcome to give us a call at 800-356-4282 and let one of our agents help you find the best option for your needs!
Getting life insurance without an exam is easier than ever, and we look forward to helping you learn about these options to help keep your life simple and protected.
Should I Activate Zander’s Ultra Antivirus Feature if I Already Have Antivirus Software?
No, there is no need to have two antivirus programs on any device. If you are already using a different antivirus software and you are happy with its functionality, you can still upgrade to the Elite plan and take advantage of the other features of the product like the UltraVPN, Credit Lock, and Financial Account Takeover monitoring.
If you do opt to utilize the Ultra Antivirus feature of your Elite ID theft protection plan from Zander, any existing antivirus programs (such as Norton or Windows Defender) should be uninstalled prior to downloading Ultra Antivirus. Having multiple antivirus programs on a device may cause problems during installation and result in less-than-optimal performance on your device(s).
Dave does not recommend using life insurance strictly for financial inheritance purposes. Life insurance should be used to address any debts you may have upon your death, and to replace your lost income so that your family can maintain their financial lifestyle.
This is because, with term life policies, you can outlive the coverage, meaning you spent dollars on a goal that may not even be accomplished. And with cash-value plans – such as whole, universal, and variable life policies – they are overpriced, poorly designed programs, and are a lousy long-term investment even while you are alive, let alone as an inheritance tool.
Dave’s advice is to get out of debt and grow your savings in order to leave an inheritance, using much smarter methods than a life insurance policy. With this approach, you can give like no one else while you’re living, then leave the remainder to your family as a debt-free, investment-rich estate upon your death.
If the amount of coverage you have right now is appropriate but you know you will need it past the expiration of your current plan, then Dave’s recommendation is to get a new policy now to lock in rates into the future and assure that you don’t lose eligibility (or have to pay a higher price) by waiting, due to a health condition or other issue arising. In some cases, you can keep the existing plan and only buy a smaller amount of coverage for the future if certain risk concerns are alleviated before the expiration of the existing term policy. If your mortgage is paid off, education expenses are no longer an issue, and you’ve increased your savings – these all help reduce one’s need for term life insurance. In that case, keeping an older, less expensive policy until its expiration can reduce your overall costs. But still buy a new plan now for any needs past the old policy’s expiration.
However, if your need for protection is more than the amount you currently have, or extends past the level guaranteed expiration period, then buying an entirely new policy now for the total amount you need, is the most advisable path to avoid high costs in the future.
If you’re experiencing suspicious activity and are a &agent_field_shown=true" target="_blank" rel="noopener">Zander ID Theft Solutions member, please call us immediately so we can open a case on your behalf and get you back to pre-theft status. If you are not a member, we suggest that you enroll into our plan since, once you’re a victim of ID theft, you’re at a higher risk at being a victim again in the future. While we cannot assist with any ID theft event that occurs before you are a member of our plan, we do offer you access to several resources on our Helpful Links page, such as how to view and monitor your credit report, place fraud alerts and credit freezes on your accounts, and more. It is important to note that being a part of a data breach does not make you a victim of ID theft. Your information being compromised by a data breach does put you more at risk but, until an ID thief actually uses your information fraudulently, you have not been victimized.
A membership with Zander ID Theft Solutions not only provides you with unlimited recovery services to clear up fraud when you are a victim, it also monitors and alerts you of suspicious activity, provides $1 million in stolen funds and expense reimbursement, and includes lost wallet protection services – just to name a few benefits! Our team of experts is here to help 24/7/365 for your convenience and peace of mind.
Dave Ramsey recommends term life insurance plans instead of cash value policies because, if you are working the Baby Steps, you won’t need life insurance for your whole life. By purchasing a 15 or 20-year term (in some cases, even a 30-year) policy equal to 10-12 times your income at an affordable premium, you can attack debt and grow your savings, becoming self-insured by the end of the term. Cash value plans, such as whole life insurance, include “savings plans” with extremely low rates of return, resulting in unreasonably high premiums. It is the smartest move to stay away from cash value plans.
The only time it might make sense to convert a term life insurance policy to a cash value plan is if the conversion or guaranteed-level premium period is about to end and you have developed a terminal illness or a condition that prevents you from being insurable in the future. In that case, if you are in debt and still need life insurance coverage, converting to a whole life policy may be your only option. Keep in mind, however, that this is a last resort, and is not a recommended approach for the vast majority of people (other than the agent who gets a commission)! If you’re still not sure whether your personal situation calls for converting policies, reach out to one of our Guides at 1-800-356-4282, and we’ll talk you through it.
In short, no. The reason being that the majority of insurance companies garner negative online reviews and ratings based on the nature of their business. In most cases, we have found that applicants are unhappy if they cannot qualify for the best rate offered, which could have been the agent’s fault or the client failing to disclose all their info initially. There can certainly be service issues that occur with any company, but we have generally found that if a qualified agent is assisting you, then these types of circumstances are typically very minimal.
Additionally, an unhappy client is often more motivated the share their experience than someone who has been handled professionally and fairly, whether it is during buying a plan, requesting changes, or having a claim paid – which we find is the usual experience for so many of the families we serve. We have also found that, regretfully, most insurance companies do not respond to their online feedback, simply because the reasons for the client’s unhappiness typically relates to protected personal and private information, and the insurance company cannot publicly engage due to privacy or legal reasons.
As your agent, we communicate with the insurance companies on your behalf, mitigating any issues that may arise and reducing the likelihood of problems or complications that go unresolved. All of the companies we represent are rated A or better with AM Best, meaning that their financial stability is solid with a favorable outlook, especially in the area of paying claims, which is their most important job. Knowing that Zander has done all the homework for you, you can focus on finding the company that gives you the best price for your needs.
Minor children (under age 18) who are added to a Zander ID Theft Solutions Family Plan receive the full breadth of services available under the program. Dependents 18 and over who live in the primary member’s household are not eligible to utilize monitoring services, but would still receive restoration, reimbursement, and lost wallet protection regardless of their age. This includes dependents with documented disabilities who have the same primary residence as the primary member and who rely on the member for maintenance and support. Dependents who do not live in the household are eligible for coverage as long as they are unmarried, under age 26, and are a full-time college student.
As an independent insurance agency in business nearly 100 years, our team brings a level of experience, knowledge, and commitment that sets us apart in our industry. Being independent means that we work for you – not the insurance companies we represent – and our goals are to find the best coverages for your needs at the most competitive pricing available. We do this though representation of the broadest array of insurance companies working in all sectors of the industry.
What sets us apart though, and why Dave Ramsey has endorsed us for over 20 years, is our commitment to serve you at every level of interaction. Seeking out and negotiating the best rates for the protection your family or business may need is just the beginning. Unlike many in our industry and in this digital world, we are committed to assisting you every day you are a client. Whether it is reviewing coverages and costs, making changes to your plan, answering questions, assisting with billing issues, or – most importantly – making sure claims are handled quickly and fairly, our commitment to serve does not stop once you buy a policy.
Historically, we are not fans of short-term health plans. They are often sold as complete health insurance options but have significant limitations for pre-existing conditions as well as other standard coverages such as mental health, maternity, and other important elements of protection. They also exclude all health conditions that were diagnosed or treated during the policy period when you renew a new plan, which is why the cost is greatly reduced compared to a standard group or individual medical plan.
However, during the recent coronavirus pandemic, we have come to appreciate the value of an immediate short-term option for people that expect to get back on their group plan in a short period of time and have lost their income, as keeping expenses to a minimum while still having some protection is imperative. There are many other options to consider such as COBRA, State Continuation Benefits, and ACA Exchange alternatives that provide subsidies to assist in the cost. Short-term is still not our recommended course of action from a coverage perspective, but in the narrow case of needing immediate benefits with very limited financial resources, they can provide a very limited alternative that is viable for some individuals and families.
