Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster

Dave Says – September 1, 2013

davesays300 greenKENTUCKY – This week Dave discusses 'Denied for life' and 'Finding good tenants'

Dear Dave,
My husband was recently denied term life insurance because he has a criminal record from a long time ago. The good news is that, in a year, he’ll be far enough removed from the incident that he’ll be eligible for a policy. He has a whole life policy for $75,000 from before, which he doesn’t plan to cancel. We have two small children, so is there another kind of policy he could get in the interim? - Dana

Dear Dana,
If you can’t get term life insurance, you can’t get whole life. It’s the same underwriting process. I only recommend term policies, but under these circumstances I’d keep the whole life in place because he’s basically uninsurable.

There are a couple of things you can do in this kind of situation. One thing is to get a mortgage life insurance policy. These are usually available without any kind of major inspection, and they pay off your mortgage, in full, in the event of death. It’s about 10 times more expensive than regular term insurance, but at least it will pay off the house.

Another thing to look into is an automatic issue-type policy. Lots of banks offer these when you open an account. Usually, they’ll send you an offer for a $10,000 life insurance policy.

But if you pick up four or five of these, then he’s got another $50,000 on top of the $75,000 already in place. It’s still not enough, but it’s better than nothing.

But I wouldn’t spend a lot when he’s only got a year left until he can get some good, proper coverage. I recommend people have eight to 10 times their annual income in life insurance coverage. So, if he makes $50,000 a year, he needs to have $400,000 to $500,000 in a good, level term policy. That’s what you guys need to shoot for a year from now! - Dave

Dear Dave,
I have a townhouse I’m preparing to rent. Do you have any advice for evaluating potential tenants? - Chris

Dear Chris,
The first thing I’d do is pull a credit bureau report. I’m not really worried about their credit score; I just want to see if they have a history of late or missed payments. Talk to some local property management firms and see who they use to pull these reports. I’d also recommend doing a background check on the potential renters. Talk to the owner of the last place they rented as well as the one before. I advise this because there are some dishonest landlords out there who will tell you that a bad tenant is wonderful just to get them out of their property.

A lot of things, though, are simply common sense measures. Have them fill out an application, which includes their income and a list of their debts. If they make $2,000 a month and have $2,500 a month in debt payments, you don’t want them as tenants. In this scenario, a smile and “I promise I can pay it” won’t work.

Spend some time just talking with them too. Really listen to what they say and how they say it. Get a feel for what kind of people they are, and, if they have children, pay special attention to the kids. Are they well behaved, or do they run around and act like a bunch of wild animals? If it’s the latter, then they’re going to tear up your house. And guess what? If the parents can’t discipline their kids, there’s a good chance they can’t discipline themselves either. You don’t want to get mixed up with that. People who let kids run the household don’t make good tenants.

Finally, remember to trust your gut instincts. If you get a weird vibe from someone, or if things just feel strange, don’t rent to them. Chances are, there’s a reason you have those feelings. - Dave

Dave Ramsey is America’s trusted voice on money and business. He’s authored four NewYork 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.


Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

© 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 by using one of the social media links below.

button coupons
button classifieds

Most Read This Week

January 23, 2015 9277

Local Church's Faith Restored; 71 Souls Saved…

in Video by Gary Gates, SurfKY News
January 22, 2015 7355

Nortonville Man Accused of Selling Drugs near…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Jail
January 21, 2015 6726

KYDOT Pre-Treating Roads Thursday in Antipation…

in Top News For All Sites by Keith Todd
January 22, 2015 6320

MCEA Head: Further School Mergers Might Ease…

in Local (Muhlenberg) Top News by Paul McRee, SurfKY News
January 23, 2015 5828

Parents Face Charges after Marijuana Joint Falls…

in Local (Hopkins) Top News by Madisonville Police Department/Hopkins County Jail
January 25, 2015 5505

Dean’s List Announced

in Top News For All Sites Touching Hopkins by Joyce Riggs
January 26, 2015 5047

KSP Arrests Two on Child Porn Charges; MPD…

in Top News For All Sites Touching Hopkins by Trooper Stu Recke
January 23, 2015 4672

Nortonville Woman Charged for Meth Possession

in Local (Hopkins) Top News by Hopkins County Sheriff's Office/Hopkins County Detention Center
January 22, 2015 3790

Local Family Business Changes Hands

in Local (Hopkins) Top News by Doreen Dennis, SurfKY News
January 25, 2015 3607

Juvenile Hit by Vehicle at McDonald's

in Local (Muhlenberg) Top News by GPD Officer Wes Miller

Stories Trending Today

January 26, 2015 3195

School Board Votes 3-2 for Utility Tax

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
January 27, 2015 2239

Hopkins County Grand Jury Indictments

in Local (Hopkins) Top News by Karen McKnight, Hopkins Circuit Clerk
January 27, 2015 1038

Madisonville Police Arrest Reports - Jan. 27, 2015

in Hopkins News by Madisonville Police Department
January 27, 2015 673

NHRA North Central Division Names Dallas Jones…

in Local (Muhlenberg) Top News by Telia Butler
January 27, 2015 653

Power of a Positive Attitude

in General News For All Sites by SurfKY News
January 27, 2015 639

Restless Legs Syndrome Affects Many

in General News For All Sites by SurfKY News
January 27, 2015 618

Whitfield Works to Combat Prescription Drug Abuse

in General News For All Sites by Marty Irby
January 27, 2015 525

UPDATE - Death Investigation

in Local (Henderson) Top News by Henderson Police Department
January 27, 2015 521

WKCTC Offering Free Tax Preparation Workshops

in Local (Paducah) Top News by Tammy Thompson
January 27, 2015 515

Breakthroughs for Circuit Clerks' Organ Donation…

in Local (Hopkins) Top News by Karen McKnight

SurfKY News Group, Inc.
Corporate Office & Studio
1125 Nebo Rd.  •  Madisonville, KY 42431
270.452.2727 (phone)
  •  270.452.2249 (fax)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2015 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flr subscribevideoitunessocial rss