I don't feel like spending my entire rainy-day fund on a hospital bill just to cover my deductible. I'll take the Hospital indemnity insurance my work provides me at $8.
Agree I worked in hospice as a social worker and also had a coworker with cancer who had to continue work while in tx major medical doesn’t pay for everything
People always say save and invest you will be fine - but your health with leave you bankrupt and living under a bridge really quick- makes you think twice about the - woulda - coulda - shoulda - instead of save,save,invest and think about your retirement.
Brian Murray, it is a historical fluke that the U.S. doesn’t already have a universal healthcare system; they should have had one decades ago...at least a “moderate” system like Switzerland’s system. 🇨🇭
Love Dave, but I disagree with his take on medical insurance. What happens to you if something happens before you build all these funds. And Dave is a millionaire, he can navigate the out of pocket expenses. People end up with thousands and thousands of dollars in medical bills when cancer strikes.
I carry accident, hospital and critical illness insurance. In 2018 I had a pretty bad accident (10 days in trauma ICU) Those three cost $50/ month. They paid out $18,000. Totally worth it from that one event.
We have cancer, heart, accidental injury, and ICU supplemental insurance with no lifetime limits and full return of premium (minus claims paid) after our 20 year term. As we see it, we’re transferring most of our short term financial risk for potential indirect costs (the kind that health insurance doesn’t help with) which is essential without a very large emergency fund (due to cash flow limitations) and having below average health insurance (due to affordability). This kind of supplemental coverage is massively helpful for people like us. Most other supplemental companies that we compared don’t offer return of premium, and so for those competitor policies it didn’t make financial sense. I wish that you would address the return of premium idea. And I also wish that you wouldn’t have given that blanket advise for that lady to cancel her cancer policy if she has an existing condition that will continue to pay out cancer benefits that far outweigh her existing cancer policy premium.
My hospital indemnity insurance would only cost me $126 per year (less than $5 per paycheck), I opted out the previous year, but based on the comments here, I’m considering buying it.
Short term insurance and long term insurance helped saved me financially from facing potential homelessness when I had a back injury and back surgery and wasn’t able to work for about 6 months. I know it’s different than what they’re talking about with the supplemental, but if my work offered supplemental, you bet I’d be signing up for that too. I sign up for all the extras that Dave or the caller would say here, gimmicky additions. They’re not gimmicks, they really do make the difference between bankruptcy and homelessness when life surprises you.
She shouldn't owe $20,000 on a $100,000 bill with an insurance plan. She has to consult her policy but she should have an out of pocket maximum of between $3000 and $10.000 depending on the plan. It's not uncommon to see a $3000 Out of pocket maximum on a $500 deductible health plan.
Robert Spencer Indeed. There’s a heck of a lot more going on here. My out of pocket maximum is $2400 a year for medical/prescription,copays,and coinsurance combined. This is one of the reasons why I only view these videos as entertainment and leave it at that. Just 5 minute calls lacking in facts and details from strangers.
Group is always cheaper than individual coverage and since she has had cancer it would hurt for her to keep supp insurance. Dave ramsey is not insurance agent, his goal is to get u to invest your money, u probably spend anywhere to 200-400 per year on suppl insurance for a family, if all i invest into stock was the same amount how long would it take for me to get 100k saved?
Most people are not on your program, Dave. Most people live hand to mouth, paycheck to paycheck and are barely treading water. For the masses who, for whatever reason lack the ability to self insure, you would still steer them away from an opportunity to insure there personal & family risk through a legitimate third party insurance company? Not only do you discourage doing this but you are labeling one of the largest segments of insurance in the U.S. and Japan as gimmicky and fraudulent. In many cases, these gimmicky little payroll deduction policies, as you call them are the only financial backstop people will ever have. Remember Dave, you are operating and making judgments from a place most people are not in and will never be in. Your word is massively influential and in my view, it was massively irresponsible to advise that woman as you did and then to have placed the judgments you did on secondary health insurance. In order to qualify for Critical Illness or Cancer coverage with a preexisting condition of cancer, a person must be 5 to 10 years cancer free to qualify. You just told a woman, who's circumstances you know nothing about, to dump a secondary coverage that she was probably paying $8 to $15 bucks a paycheck for (and likely pretax).
I agree I personally work for a large supplemental insurance company and I can tell you we are not scamming people we pay out when people get sick.. I am not an sales agent I just work in processing claims and we pay hundreds of thousands on Cancer claims. Since we are not major medical these policies get paid out to you. And these cancer payments help pay for all the chemo co-pays and medications, trial treatments etc. Supplemental is something your paying for so should the situation arise you get to use that money however you'd like. The money goes straight to you for expenses not a provider. Unless you have $400k saved up and want to blow all your savings then supplemental can be a financial savior.
It sounds like he was giving personal advice without full understanding of how major medical or supplemental insurance actually works. The caller with a $500 deductible, 20% coinsurance would have had about a $3-5K oop max; the $250K debt may have been the result of noncovered charges and trial medications and some supplemental policies offers coverage in those cases. Besides, who wants to use their savings for medical services...um, not me!
I'm thinking of going back to school. Take either law or economics. I am 62. I could get free college. And he able to figure out how to set my family up.
This is bad and potentially dangerous advice Dave! Most people live Paycheck to paycheck. And even if they did have a large savings why spend it all in a crisis situation? Especially when supplemental insurance is inexpensive! Let’s take for example someone in their 50’s who just depleted their life savings on cancer bills or in a horrible accident, they can’t return to work for a long period of time, how are they going to rebuild their savings? They don’t want to work for the next 20 years trying to! Seems as you tend to only look at life through YOUR eyes, your very wealthy eyes, not the eyes of the Average person.
I find it hard to believe all of that debt is from her medical bills. She said she had insurance, and even bad health insurance bought on the Obamacare exchange has like a 8k/year max out of pocket limit.
@@Warmfireandtea They pay 60%, but that only applies to amounts below the out of pocket max. Insurance pays every dollar above the out of pocket max, it's called that for a reason
As a social worker in hospice I believe in supplemental benefits for health because I have found that many don’t have enough money to address all the various needs of patients and their family. I was always looking for options to help I people in need so I think it’s a wise but what do I know my 20 years in hospice working with people in need 🙄
If you, your spouse, and or anyone else in your family have or have been diagnosed with cancer, a stroke, or a heart attack you will realize that the benefits of AFLAC cancer policy for example will be better than any “emergency fund” you might have, unless you’re a few gifted with a seven figure income. Ramsey does not have the additional benefits because he’s got a net worth of over $200 million dollars in 2023. He can leverage his equity to offset any debts plus has residual incomes from multiple investments. These additional policies benefit those that make less than $200,000 a year, not the multi millionaire like Dave Ramsey, who owns insurance companies.
There’s no way anyone with health insurance has 250k in medical bills. I had cancer and health insurance paid out over 1 million dollars and my max out of pocket per year was like $7,500 a year. This is with a silver plan. Even if you have the cheapest and worst health insurance I think the most out of pocket per year is somewhere in the 10-15 thousand range with the cheapest and worst health insurance plans.
To be clear this is NOT in reference to "Medicare Supplemental Insurance". AKA Medigap insurance policies(2nd payer to Part A&B). This case is for employer-based group health plans(Major Medical). The folks that are Medicare-Eligible or on Medicare are at a much higher risk for expensive medical services throughout their Medicare journey like hospitalization, outpatient surgeries & Part B in-office administered drugs(Cancer Meds/Treatments). Fortunately, Part A & B typically cover up to 80% of medical bills. So it is important to discern if you chose " Original Medicare"(Medicare Part A&B) or the optional alternative "Medicare Advantage"(Part C offered by private companies) as your primary health insurance. You would be surprised how many beneficiaries are unsure who their primary health insurance is for Medicare.
What about bills like rent, car insurance, phone bills, gas, groceries, PT, etc ? No health insurance plan on the planet will cover those expenses. !!!
Hi Dave, I've been listening your RUclips videos for a week now, and I'm from India, I would like to ask you if you have a FPU class in India, or is there any other way we can contact, cuz I'm in a bind and really use some help.
Terrible advice. Indemnity insurance is designed to cover deductibles and other out of pocket expenses that your regular medical insurance does not cover.
If spoken with conviction, even the ignorant sound convincing. Cancer treatments vary, complications that arise from cancer treatment also vary. You can’t realistically plan for something so volatile. Also, if he knew anything about insurance he’d understand that yearly out of pocket maximum is a thing. Her deductible is irrelevant if she has planned to cover the maximum + regular maintenance requirements for her way of living. Either way, the amount you need saved to cover your monthly bills, personal/child care if your spouse also has to miss work, etc. is incalculable for 2 years before long term disability kicks in…you’d need to be a millionaire to be so carefree about supplemental insurance 😅 oh wait…
Poor becomes poorer because they do not secure their future with these supplemental that could really benefit them especially on rainy days. Why would you blow your savings away when you can secure them? Also, not everyone can afford insurance but would it be nicer to at least have something that could really save you.
A medicare for all means letting the government decide on if you get a life saving procedure or surgery and who gets it first. Just an example, two people have a heart condition...one is in his early 60's and the other in his early 20's...If they had to chose whose procedure to approve...who do you think will get approved and who denied? A medicare for all system will take you and out of the picture of any decision making and they get to make that decision. That means putting your life in the hands of the government...how well is that going now?
No and Yes... No because Dave is very much wrong in this situation and isn't taking into account how a family keeps their head above water and their bills paid in the event of a catastrophic medical event like cancer. His solution is always the "rainy day fund", but what if you haven't built that fund yet, or don't have the ability to build that fund based on your current household income. Dave's responses are always typical and often disregard any "what if" scenarios that don't align within his solution. Also, yes you should cancel the Aflac, but only to buy a Cigna supplemental health plan instead. It's cheaper, has better coverage, more benefits, from a better company that doesn't have to spend millions a year on a duck.
I don't feel like spending my entire rainy-day fund on a hospital bill just to cover my deductible. I'll take the Hospital indemnity insurance my work provides me at $8.
Exactly! 🙌
For someone who has had cancer I would be cautious on cancelling any policies without discussing with your oncologist.
Agree I worked in hospice as a social worker and also had a coworker with cancer who had to continue work while in tx major medical doesn’t pay for everything
@@lisasalamone-talton4594 current hospice nurse here 👍social workers are a blessing
Wow! She had health insurance & still ended up with $250K in medical bills 🤯😵. She survived cancer🙌👏🙏
Bankrupcty will take care of it...
People always say save and invest you will be fine - but your health with leave you bankrupt and living under a bridge really quick- makes you think twice about the - woulda - coulda - shoulda - instead of save,save,invest and think about your retirement.
Brian Murray, it is a historical fluke that the U.S. doesn’t already have a universal healthcare system; they should have had one decades ago...at least a “moderate” system like Switzerland’s system. 🇨🇭
I would rather have debt than die of cancer
Love Dave, but I disagree with his take on medical insurance.
What happens to you if something happens before you build all these funds.
And Dave is a millionaire, he can navigate the out of pocket expenses.
People end up with thousands and thousands of dollars in medical bills when cancer strikes.
I carry accident, hospital and critical illness insurance. In 2018 I had a pretty bad accident (10 days in trauma ICU)
Those three cost $50/ month. They paid out $18,000.
Totally worth it from that one event.
We have cancer, heart, accidental injury, and ICU supplemental insurance with no lifetime limits and full return of premium (minus claims paid) after our 20 year term. As we see it, we’re transferring most of our short term financial risk for potential indirect costs (the kind that health insurance doesn’t help with) which is essential without a very large emergency fund (due to cash flow limitations) and having below average health insurance (due to affordability). This kind of supplemental coverage is massively helpful for people like us. Most other supplemental companies that we compared don’t offer return of premium, and so for those competitor policies it didn’t make financial sense. I wish that you would address the return of premium idea. And I also wish that you wouldn’t have given that blanket advise for that lady to cancel her cancer policy if she has an existing condition that will continue to pay out cancer benefits that far outweigh her existing cancer policy premium.
Roger I am just seeing this would really like to know what carrier offered you these policies?
Roger Smith, Same question as above, please and thank you.
(What insurance do you have)
@@michaeldesarno9537 Sounds like Family Heritage. I sell these policies. 100% return of premium tax free.
@@2trntbls469 Sounds like Family Heritage. I sell these policies. 100% return of premium tax free.
@@tylernewsome7656 I'm currently interviewing with them. Do you still sell for them?
No chance Dave has enough info to give this advice.
Bankruptcy! It's your friend when in times like this. House and retirement are protected
My hospital indemnity insurance would only cost me $126 per year (less than $5 per paycheck), I opted out the previous year, but based on the comments here, I’m considering buying it.
If you are an entrepreneur you definitely need all of these kinds of insurance
Short term insurance and long term insurance helped saved me financially from facing potential homelessness when I had a back injury and back surgery and wasn’t able to work for about 6 months. I know it’s different than what they’re talking about with the supplemental, but if my work offered supplemental, you bet I’d be signing up for that too. I sign up for all the extras that Dave or the caller would say here, gimmicky additions. They’re not gimmicks, they really do make the difference between bankruptcy and homelessness when life surprises you.
She shouldn't owe $20,000 on a $100,000 bill with an insurance plan. She has to consult her policy but she should have an out of pocket maximum of between $3000 and $10.000 depending on the plan. It's not uncommon to see a $3000 Out of pocket maximum on a $500 deductible health plan.
Exactly. You beat me to it.
Robert Spencer
Indeed. There’s a heck of a lot more going on here.
My out of pocket maximum is $2400 a year for medical/prescription,copays,and coinsurance combined.
This is one of the reasons why I only view these videos as entertainment and leave it at that.
Just 5 minute calls lacking in facts and details from strangers.
Group is always cheaper than individual coverage and since she has had cancer it would hurt for her to keep supp insurance. Dave ramsey is not insurance agent, his goal is to get u to invest your money, u probably spend anywhere to 200-400 per year on suppl insurance for a family, if all i invest into stock was the same amount how long would it take for me to get 100k saved?
He’s rich he doesn’t need supplemental ins , working man it will help
Most people are not on your program, Dave. Most people live hand to mouth, paycheck to paycheck and are barely treading water. For the masses who, for whatever reason lack the ability to self insure, you would still steer them away from an opportunity to insure there personal & family risk through a legitimate third party insurance company? Not only do you discourage doing this but you are labeling one of the largest segments of insurance in the U.S. and Japan as gimmicky and fraudulent. In many cases, these gimmicky little payroll deduction policies, as you call them are the only financial backstop people will ever have. Remember Dave, you are operating and making judgments from a place most people are not in and will never be in. Your word is massively influential and in my view, it was massively irresponsible to advise that woman as you did and then to have placed the judgments you did on secondary health insurance. In order to qualify for Critical Illness or Cancer coverage with a preexisting condition of cancer, a person must be 5 to 10 years cancer free to qualify. You just told a woman, who's circumstances you know nothing about, to dump a secondary coverage that she was probably paying $8 to $15 bucks a paycheck for (and likely pretax).
Agree. Couldn’t have said it better myself.
Well said
Well Said!
I agree I personally work for a large supplemental insurance company and I can tell you we are not scamming people we pay out when people get sick.. I am not an sales agent I just work in processing claims and we pay hundreds of thousands on Cancer claims. Since we are not major medical these policies get paid out to you. And these cancer payments help pay for all the chemo co-pays and medications, trial treatments etc. Supplemental is something your paying for so should the situation arise you get to use that money however you'd like. The money goes straight to you for expenses not a provider. Unless you have $400k saved up and want to blow all your savings then supplemental can be a financial savior.
@@marilyn8700 what company do you work for? Currently looking for supplemental. Any chance i can get some info please?
It sounds like he was giving personal advice without full understanding of how major medical or supplemental insurance actually works. The caller with a $500 deductible, 20% coinsurance would have had about a $3-5K oop max; the $250K debt may have been the result of noncovered charges and trial medications and some supplemental policies offers coverage in those cases. Besides, who wants to use their savings for medical services...um, not me!
This, so much this.
I'm thinking of going back to school. Take either law or economics. I am 62. I could get free college. And he able to figure out how to set my family up.
Do whatever you want
Ok
This is bad and potentially dangerous advice Dave! Most people live Paycheck to paycheck. And even if they did have a large savings why spend it all in a crisis situation? Especially when supplemental insurance is inexpensive!
Let’s take for example someone in their 50’s who just depleted their life savings on cancer bills or in a horrible accident, they can’t return to work for a long period of time, how are they going to rebuild their savings? They don’t want to work for the next 20 years trying to!
Seems as you tend to only look at life through YOUR eyes, your very wealthy eyes, not the eyes of the Average person.
I find it hard to believe all of that debt is from her medical bills. She said she had insurance, and even bad health insurance bought on the Obamacare exchange has like a 8k/year max out of pocket limit.
wLowest cost plans only pay half.
@@Warmfireandtea They pay 60%, but that only applies to amounts below the out of pocket max. Insurance pays every dollar above the out of pocket max, it's called that for a reason
As a social worker in hospice I believe in supplemental benefits for health because I have found that many don’t have enough money to address all the various needs of patients and their family. I was always looking for options to help I people in need so I think it’s a wise but what do I know my 20 years in hospice working with people in need 🙄
If you, your spouse, and or anyone else in your family have or have been diagnosed with cancer, a stroke, or a heart attack you will realize that the benefits of AFLAC cancer policy for example will be better than any “emergency fund” you might have, unless you’re a few gifted with a seven figure income. Ramsey does not have the additional benefits because he’s got a net worth of over $200 million dollars in 2023. He can leverage his equity to offset any debts plus has residual incomes from multiple investments. These additional policies benefit those that make less than $200,000 a year, not the multi millionaire like Dave Ramsey, who owns insurance companies.
There’s no way anyone with health insurance has 250k in medical bills. I had cancer and health insurance paid out over 1 million dollars and my max out of pocket per year was like $7,500 a year. This is with a silver plan. Even if you have the cheapest and worst health insurance I think the most out of pocket per year is somewhere in the 10-15 thousand range with the cheapest and worst health insurance plans.
No it's possible
That was probably pre- Obamacare
Oh on its very possible
You are assuming they are on an ACA style health insurance plan.
Is a community rated medigap plan a good way to go if you figure to live a long time?
To be clear this is NOT in reference to "Medicare Supplemental Insurance". AKA Medigap insurance policies(2nd payer to Part A&B). This case is for employer-based group health plans(Major Medical). The folks that are Medicare-Eligible or on Medicare are at a much higher risk for expensive medical services throughout their Medicare journey like hospitalization, outpatient surgeries & Part B in-office administered drugs(Cancer Meds/Treatments). Fortunately, Part A & B typically cover up to 80% of medical bills. So it is important to discern if you chose " Original Medicare"(Medicare Part A&B) or the optional alternative "Medicare Advantage"(Part C offered by private companies) as your primary health insurance. You would be surprised how many beneficiaries are unsure who their primary health insurance is for Medicare.
What about bills like rent, car insurance, phone bills, gas, groceries, PT, etc ? No health insurance plan on the planet will cover those expenses. !!!
Dave's the type of guy who doesn't tip the waitress because he thinks she's not managing her money correctly lol
Hi Dave, I've been listening your RUclips videos for a week now, and I'm from India, I would like to ask you if you have a FPU class in India, or is there any other way we can contact, cuz I'm in a bind and really use some help.
Terrible advice. Indemnity insurance is designed to cover deductibles and other out of pocket expenses that your regular medical insurance does not cover.
If spoken with conviction, even the ignorant sound convincing. Cancer treatments vary, complications that arise from cancer treatment also vary. You can’t realistically plan for something so volatile.
Also, if he knew anything about insurance he’d understand that yearly out of pocket maximum is a thing. Her deductible is irrelevant if she has planned to cover the maximum + regular maintenance requirements for her way of living. Either way, the amount you need saved to cover your monthly bills, personal/child care if your spouse also has to miss work, etc. is incalculable for 2 years before long term disability kicks in…you’d need to be a millionaire to be so carefree about supplemental insurance 😅 oh wait…
How are you
Very logical and respectful way to bring the caller back down to earth!
This is by far the worst advice I’ve ever heard on insurance . So disappointed and I like Dave for the most part but this is quite irresponsible
Poor becomes poorer because they do not secure their future with these supplemental that could really benefit them especially on rainy days. Why would you blow your savings away when you can secure them? Also, not everyone can afford insurance but would it be nicer to at least have something that could really save you.
As an entrepreneur you need all kinds to protect your income
This has got to be the worst advice. If he didn’t have a giant ego his answer should have been “ I dnt understand how supplemental policies work”
Medicare for all!
Be quiet, benefits moocher.
Agreed. We spend massive amounts of money to worse results here in the US. I like Andrew Yang’s plan on this transition the most.
Ha, so you can die by other people's choices instead of your own. That sounds even worse.
A medicare for all means letting the government decide on if you get a life saving procedure or surgery and who gets it first. Just an example, two people have a heart condition...one is in his early 60's and the other in his early 20's...If they had to chose whose procedure to approve...who do you think will get approved and who denied? A medicare for all system will take you and out of the picture of any decision making and they get to make that decision. That means putting your life in the hands of the government...how well is that going now?
@@shariboyce9459 no it wouldn’t
So, should my wife cancel her Aflac?
You'll have to buy into the old curmudgeon's program to find out.
Pick up Family Heritage! We offer a 100% return of premium minus any claims paid if you never used it!!!
Znagy07 lol we sure do don’t we
No and Yes... No because Dave is very much wrong in this situation and isn't taking into account how a family keeps their head above water and their bills paid in the event of a catastrophic medical event like cancer. His solution is always the "rainy day fund", but what if you haven't built that fund yet, or don't have the ability to build that fund based on your current household income. Dave's responses are always typical and often disregard any "what if" scenarios that don't align within his solution.
Also, yes you should cancel the Aflac, but only to buy a Cigna supplemental health plan instead. It's cheaper, has better coverage, more benefits, from a better company that doesn't have to spend millions a year on a duck.
@@matthewcobb2588 Why does it have to be Cigna for the supplemental health plan. Do they have something other the other he could buy from?
1st
Please make segment as to why you shouldn’t purchase a home from a young knowledgeable real estate agent