Dave’s Dos & Don’ts on InsuranceDownload PDF Version
Insurance is an important part of any financial plan. It transfers risk away from the individual in exchange for a premium payment. It is very valuable in some key areas to help avoid financial devastation but can also be a drag on your ability to get out of debt and grow wealth if the wrong plans are purchased. Creating an Emergency Fund equal to three to six times your monthly income eliminates the need for many types of insurance programs and allows you to concentrate your insurance dollar on the bigger financial risks. Below is a brief review of strategies that Dave Ramsey recommends as an overall approach to purchasing insurance in a way that will maximize your protection and minimize your costs.