Why Does Dave Ramsey Hate Permanent Life Insurance?

David starts the conversation by explaining why financial gurus like Dave Ramsey and Suzzie Orman hate permanent life insurance.

With all the financial information floating around on the internet, who do you follow for advice on where to invest your money? David believes everybody’s situation is different, but the best people to follow are the ones who are consistent with their messaging. 

David calls out The White Coat Investor for misleading people that interest rates won’t go up, only for him to change his mind when Biden’s tax proposals threatened to raise taxes. 

According to David, there are two sides to every investment advice on the internet. Instead of stubbornly following one narrative and muting everything else, your job as an investor is to listen to both sides of the story and decide based on your current situation. 

When meeting with an investment advisor, David believes the least you can do is ask as many questions as possible. 

There is so much controversy around permanent life insurance because gurus like Dave Ramsey and Suzzie Orman have continuously peddled lies that life insurance doesn’t compare well to the stock market and that the expenses are too high – both of which are false. 

For David, permanent life insurance is like marriage; you should only invest in one if you plan to keep it till you die.

Although most financial advisors agree that interest rates will go up, David feels they need to take more action. Believing is one thing, but taking action to mitigate the risk of higher tax rates is a whole different story.

When asked what advice he would give to people approaching retirement, David explains they only need to plan for two things – higher taxes and outliving their money.

For the younger people who are not that close to retirement, David notes that tax rates will undoubtedly be higher in the future. So now would be a good time to take advantage of all the tax-free savings tools at their disposal.



Mentioned in this episode:

David’s books: Power of Zero, Look Before Your LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code


PowerOfZero.com (free video series)

@mcknightandco on Twitter 

@davidcmcknight on Instagram

David McKnight on YouTube

Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David M. Walker

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