Financial Guru Dave Ramsey Advises Young Woman to Decline Father's Unusual 'Investment' Request
In a recent episode of "The Ramsey Show," a 24-year-old listener named Frankie presented a financial and familial dilemma that left the hosts stunned. Her 65-year-old father had asked her to pay for his life insurance policy, suggesting she view the ongoing premiums as a long-term investment since she would be the eventual beneficiary.
"That's one of the more unusual requests I've heard," responded Dave Ramsey, the show's host and a renowned personal finance author. He immediately advised Frankie to decline. "When you heard that, you had to go, 'Say what?'... I think that's a hard pass. That's a big N-O."
Ramsey dismantled the father's logic, pointing out that life insurance is fundamentally protection, not an investment vehicle. "Mathematically, it's a poor investment because insurance companies profit from policies," he explained. "By definition, that means it's not a good place for your investment dollars."
He contrasted this with a legitimate use of life insurance shared earlier on the show: a young, recently debt-free family where the husband died unexpectedly, leaving a policy that provided crucial financial security.
Co-host Ken Coleman called the idea "wacky" and advised Frankie not to over-rationalize it. "You can't reason with wacky, you just gotta move on quickly," he said.
The discussion highlighted the complex emotional toll such requests can place on adult children, blurring lines between financial support and familial obligation. Ramsey encouraged a kind but firm boundary: "Just go, 'Dad, I'm 24. I'm going to be doing other kinds of investing instead of investing in your death. Thanks for the offer.'"
Ramsey, who is in his sixties, shared that he no longer carries life insurance himself, as his estate is sufficiently large and debt-free. The segment served as a broader lesson in identifying financial arrangements that are presented as opportunities but may, in reality, be burdens in disguise.
Reader Reactions
Michael T., Financial Planner, Chicago: "Ramsey is spot on. This conflates two separate financial concepts. The father's retirement and estate planning are his responsibility. Frankie's capital should be building her own future through actual investments."
Sarah Chen, Graduate Student, Boston: "It's so emotionally manipulative. It puts the daughter in an impossible position where saying 'no' feels like she's betting against her own father's life. The psychological burden is unfair."
Robert "Bob" Greer, Retired, Tampa: "Maybe the dad's just scared and bad at communicating. Could be he's worried about final expenses and is embarrassed to ask for help directly. Still, calling it an 'investment' is a major stretch."
Lisa Morrison, Small Business Owner, Austin: "This is outrageous! It's pure financial guilt-tripping. A parent's job is to set their child up for success, not to become a monthly bill. Ramsey's 'hard pass' is the only sane response."