NASHVILLE, Tenn. -- People are forced every day to make tough choices to pay for medicine or pay for food, but financial expert Dave Ramsey said people should definitely pay for insurance.

Related: Money Crunch | Money Saving Tips | Video

Ramsey said there are some things people should be doing even in tight budget times, including having a strong insurance policy.

"You need to have eight to 10 times your income in good, 20-year-level term life insurance," Ramsey said.

"On the health insurance, if you're having to pay for it and you're healthy, look into the (health savings accounts.) Big deductible pays 100 percent after that, very nice. And low premiums on health insurance, very good plan on that," he said.

When it comes to homeowners and car insurance, Ramsey said, "Raise your deductibles, but you should be doing this anyway. It's good financial planning."

There are a lot people offering gimmick insurance trying to prey on your emotions, Ramsey said. But he said when it comes to insurance, people should stick with the basics, which are home, health and life.