Dave Ramsey’s Financial Peace University Week 7

If you are just tuning in I’m currently taking the Dave Ramsey Financial Peace University classes and reviewing them each week. If you missed any you can catch them here;

• Week 1: Super Saving
• Week 2: Relating To Money
• Week 3: Cash Flow Planning
• Week 4: Dumping Debt
• Week 5: Credit Sharks in Suits
• Week 6: Buyer Beware

The Class

This week’s class was called “Clause and Effect”. It was about insurance. I know its a fun topic! Everyone loves talking about insurance. NOT. But it is a necessary evil in our lives and overall it makes our lives less risky. Who doesn’t want to get rid of some risk in their life? Plus it really doesn’t take long to figure out what type of insurance you need and put it in place. Once its done you can check it off your to do list for at least a year, if not forever.

Dave went over 7 different types of insurance.

• Homeowner’s or Renters Insurance
• Auto Insurance
• Health Insurance
• Disability Insurance
• Long-Term Care Insurance
• Identity Theft Protection
• Life Insurance

He explained a lot of the verbage that goes along with insurance. Knowing the lingo of an industry is often half the battle. He also gave his opinion on when you should buy different types of insurance, such as long-term care and life insurance. He also explained the difference between whole life and term life insurance.

It did prompt some discussion about my mother in law and the possibility of looking into some long term care insurance for her. After doing some very basic and quick google searches it looks like it costs around $2,000 per year for long-term care coverage if you buy it at age 65. Split three ways among the siblings it would be about $50 per month. Even if we double that cost I think it’s worth doing. So I think we are going to move forward with this and at least seriously look into it.

Before they started the video the hosts showed us the kit Dave Ramsey has for kids. It includes 4 books, 6 audio CDs, a bank, and a tote bag. It costs $50 and can be found right here. It did look pretty cool for my daughter, who I can not get interested in money. But for me, $50 is more than I want to spend.

The Sharing

Everyone was amped up about last week’s class and we spent a lot of time talking about commercials. The Blues said how they noticed that the commercials are themed along with the show they are placed in. He used the example of watching The Biggest Loser and seeing commercials for things like Jenny Craig, Subway and other weight loss type things. People were chiming in on this idea and then a new lady who hasn’t been in the class before called the show The Big Fat Loser on accident and I about died. I was laughing so hard to myself I was almost in tears.  I doubt it’s as funny in writing, but just thinking about it making me laugh all over again.  The Big Fat Loser.  Haha.

There is an accountant in the class and she brought up something that I hadn’t heard. We were talking about Health Savings Accounts and High Deductible Health Insurance. She said if you have money in your Health Savings Account when you become eligible for Medicare the money in your HSA will roll over into your IRA. I did not know that.

Next week: That’s Not Good Enough!