3 false assumptions Dave Ramsey makes about term life insurance
May 18, 2016 by Michael Markey
I’m often asked, “Why do you think people like Dave Ramsey so much, and why don’t you like him?”
First, it’s not that I don’t like Dave Ramsey. One of my core beliefs is that everything can be broken down into a simple mathematical equation, including Dave’s advice. Math is math. It’s simple. It’s not personal; it’s just math. Dave seemingly doesn’t use math. Instead, he focuses on preconceived notions, many of which were birthed when Prince was still making hit albums.
Dave’s preconceived notions include “buy term and invest the difference (BTID).” He can persuade his listeners to buy identity theft insurance in perpetuity, but he cannot bring himself to do the same with permanent life insurance. Why? It’s not because of the math. BTID makes three flawed assumptions (outlined below) that are riddled with bad math.
