Dave Ramsey Says these are the 8 Types of Insurance You Must Have!

Today, we’re diving into Dave Ramsey’s list of essential insurances. While insurance might not be the most thrilling topic, it’s absolutely vital to safeguard your family, health, and finances.

1. Auto Insurance

Dave’s Take: Essential and legally required.

Auto insurance isn’t just about compliance; it protects you from financial ruin after an accident.

• Collision Coverage: Repairs your car if you’re at fault in an accident.
• Comprehensive Coverage: Covers theft, fire, vandalism, or natural disasters.
• Liability Coverage: Pays for damages or injuries you cause to others, plus legal fees if you’re sued.
• Uninsured/Underinsured Motorist Coverage: Protects you if you’re hit by someone without adequate insurance.

2. Health Insurance

Dave’s Take: A must to avoid catastrophic medical debt.

Health insurance protects you from massive expenses, such as hospitalizations or surgeries.

• Employer-Sponsored Plans: Usually the most affordable.
• High-Deductible Plans with HSAs: Lower premiums, plus tax-free savings for medical costs.

3. Life Insurance

Dave’s Take: Term life insurance over whole life.

• Term Life Insurance: Affordable and straightforward. Aim for coverage worth 10-12 times your annual income.
• Whole Life Insurance: Expensive and less effective compared to investing in mutual funds.

4. Homeowners or Renters Insurance

Dave’s Take: Protect your home and belongings.

• Extended Dwelling Coverage: Pays to rebuild your home after a disaster.
• Personal Property Coverage: Replaces stolen or damaged belongings.
• Liability Coverage: Protects against lawsuits for injuries on your property.

For renters, insurance covers personal belongings that landlords’ policies don’t.

5. Long-Term Disability Insurance

Dave’s Take: Covers your income if you can’t work.

• Short-Term Disability: Covered by your emergency fund.
• Long-Term Disability: Replaces 60-70% of your income for extended periods.

6. Long-Term Care Insurance

Dave’s Take: Get this at age 60 to cover nursing home and in-home care costs.

• High Costs: Assisted living or nursing homes can cost over $110,000 annually.
• Asset Protection: Prevents these expenses from depleting your retirement savings.

7. Identity Theft Protection

Dave’s Take: Essential in today’s digital world.

• Restoration Services: Helps clean up credit reports and resolve fraud.
• Credit Monitoring: Alerts you to suspicious activity.

8. Umbrella Insurance

Dave’s Take: Recommended for those with a net worth of $500,000 or more.

• Additional Protection: Covers legal fees and damages beyond your standard policies.
• Affordability: $200–$300 annually for $1 million in coverage.

What Should You Do Next?

At Trailstone Insurance Group, we:

• Work with over 40 carriers to find you the best coverage at the best price.
• Provide personalized advice to meet your specific needs.
• Make insurance simple, affordable, and stress-free.

Contact us today to start building your financial safety net!

Until next time, stay protected and financially secure!