Nicole Spector

Tue, Jul 1, 2025, 9:03 AM5 min read

Many people don’t know much about wills and insurance. For example, we may assume we don’t make enough money to justify having an insurance policy to protect us from identity theft or finalizing a will. You may not have much, but chances are good you have enough to warrant an estate plan, which entails the right life insurance policy and the proper execution of a legally binding will.

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In a blogpost on Dave Ramsey’s site, Ramsey Solutions, the Ramsey team busted seven popular myths about wills and life insurance. Make sure not to fall for these — they could put your financial health at risk and endanger the economic lives of the people you hold dear.

Which of the following two people needs an estate plan? The older man with a heart condition and a family of five relying on him or the 22-year-old healthy college grad who is single and has her whole life ahead of her? Trick question: the answer is both. There may be more urgency for the former to create one, but if the healthy college grad owns anything — be it money in a bank account in her name or a cat — she too needs a will.

“The truth is, any adult who owns stuff of any kind needs a will because tomorrow is not promised — and you don’t want the government deciding who gets your property,” the Ramsey Solutions team wrote. “Getting this done is one of the most loving things you can do for everyone you care about because it saves them legal hassle and gives them closure about where your stuff winds up.”

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Nothing is free, and that includes making a legally binding will. But you may think they’re a lot more expensive than they actually are. If you want to save money, do your will online instead of retaining a lawyer, who could charge hundreds an hour.

“We recommend working with our partners at Mama Bear Legal Forms to get your will done online,” the Ramsey Solutions team wrote. “Their wills are just as legit as any fancy attorney-made document. Their services will cover all will-related needs for 90% of people.”

In 2024, the FTC reported receiving 2.6 million fraud reports in 2023. Of those who filed reports, more than 100,000 people said the theft cost them $10,000 or more. An increasingly common type of fraud is identity theft. If you think you’re exempt from risk, think again. The Ramsey team recommended being proactive and avoiding identity theft by purchasing protection against it.