DUE TO HEAVY SNOWS IN WESTERN KENTUCKY...WIDESPREAD 6 TO 12 INCH SNOWFALL AMOUNTS HAVE HAULTED AREA TRAVEL. ISOLATED 15 INCH AMOUNTS HAVE BEEN REPORTED. DRIFTS UP TO A FOOT AND A HALF HAVE ALSO BEEN REPORTED. THIS IS A DANGEROUS STORM SITUATION AND TRAVEL SHOULD BE AVOIDED IF AT ALL POSSIBLE. (National Weather Service)

davesays300 green2KENTUCKY (2/10/13) – This week Dave discusses basing term life insurance and fighting the insurance company

Dear Dave,
I’m looking at buying term life insurance. Currently, I’m in medical school doing my last year of residency and making $35,000 a year. Should I base the amount of insurance coverage on what I’m making now or what I’ll make when I’ve finished medical school? - Amanda

Dear Amanda,
In most cases, I advise basing the amount of life insurance coverage on the income you’re earning at the moment. After all, that’s the amount your family is used to living on, right? However, if you’re finishing up your medical degree this year, it’s a virtual certainty you’ll earn lots more in 2014. You could easily go from making $35,000 to $135,000.

I recommend that people buy term life insurance coverage of about 10 to 12 times their annual income. Considering your situation, I’d say you could afford to buy a little potential. Instead of basing it on your current $35,000 income and buying a policy in the $350,000 to $400,000 range, you might double that amount. It will still be really cheap coverage as long as you’re in decent health. And once you’re making doctor money you can adjust the amount of coverage according to what you actually make.

Good luck, Amanda! — Dave
 
Dear Dave,
My wife and I were recently involved in an auto accident, and the insurance company doesn’t want to cover the damage due to a technicality. We both work, so I’d like to find a replacement car while we fight this out with the insurer. However, we only have $7,000 in savings and we don’t want to spend it all. What should we do? - John

Dear John,
You can definitely find your wife a good used car for what you’ve got in the bank. However, leaving yourselves with no savings whatsoever is not a good plan.

I realize no one enjoys driving a beater, but that’s what I’d do right now. Just look at it as a rental car. If you spend $1,500 on a little used something, you will have $5,500 left in your savings account. Just act as your own insurance company for a while. Then, when the big guys pay up, you could just plug it back into your savings account.

Even if they don’t pay, you’ll still have a nice chunk of change sitting there. And it wouldn’t take long to save up enough to upgrade that little hooptie to something nicer and more reliable while still keeping the majority of your savings intact! - Dave
 
* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

springhour
3/13 - 16

In Other News...

Registration Deadline for HCCYL Extended

HOPKINSVILLE, Ky. (3/5/15) — The Hopkinsville-Christian County Youth League has extended its baseball and softball… Read More

Muhlenberg County Educator Inducted into Kentucky Teacher Hall of Fame

BOWLING GREEN, Ky. (3/4/15) — Mary K. Armstrong, a longtime Muhlenberg County educator, was inducted Tuesday into the… Read More
1 DOW 18,135.72
+38.82 (0.21%)    
2 S&P 2,101.04
+2.51 (0.12%)    
3 NASDAQ 4,982.81
+15.67 (0.32%)    
3/13 - 16

Most Read This Week

March 02, 2015 9489

Madisonville Teen Faces Numerous Drug Charges

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 25, 2015 8891

Multi-Agency Investigation Nets Large-Scale Meth…

in Top News For All Sites by Trooper Stu Recke
February 25, 2015 6476

New Asian Restaurant Coming to Madisonville

in Local (Hopkins) Top News by Gary Gates, SurfKY News
March 03, 2015 5770

Three Arrested during Traffic Stop

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Detention Center
February 25, 2015 4461

Local Man Makes Unique Display from Area’s…

in Local (Hopkins) Top News by Tammy Holloway, SurfKY News
March 05, 2015 4159

State of Emergency Declared for Hopkins County

in Local (Hopkins) Top News by Leslie Curneal

Most Read This Month

February 12, 2015

UPDATE: Name of Pennyrile Fatality Officially…

in Top News For All Sites Touching Hopkins by Doreen Dennis, SurfKY News
February 16, 2015

UPDATE: State of Emergency Declared for Kentucky

in Local (Hopkins) Top News by Rita Dukes Smith, SurfKY News Director

Stories Trending Today

March 05, 2015 4159

State of Emergency Declared for Hopkins County

in Local (Hopkins) Top News by Leslie Curneal
March 05, 2015 3599

UPDATE: I-24 Open Between 50-45 MM

in Top News For All Sites Touching Hopkins by Keith Todd
March 03, 2015 2794

Superintendent: Spring Break Won't be Touched…

in Hopkins News by Tammy Holloway, SurfKY News
March 05, 2015 2011

Deep Snowfall Stalls Western Kentucky

in Top News For All Sites by SurfKY News
March 04, 2015 1980

Highway Crews Dealing with Landsides in…

in Local (Muhlenberg) Top News by Keith Todd
March 04, 2015 1743

KSP Warns of Old Scam Resurfacing in the Post 2…

in Top News For All Sites Touching Hopkins by Trooper S. C. Recke
March 04, 2015 1501

Adamson Chosen as Madisonville MSU Campus’…

in Top News For All Sites Touching Hopkins by Tammy Holloway, SurfKY News
March 04, 2015 1487

Madisonville Police Arrest Reports - March 4, 2015

in Hopkins News by Madisonville Police Department
March 04, 2015 1435

Muhlenberg County Educator Inducted into Kentucky…

in Local (Muhlenberg) Top News by WKU News
March 05, 2015 1290

Muhlenberg Issues State of Emergency Under…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News