Pick Your Community: | Hopkins | Muhlenberg | Daviess | Christian | Henderson | Lakes | McCracken | Webster
Davis Motor Sales banner ad

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 2014 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.

Posted on 2/2/14
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013
2/6/2014 - posted
3/13 - 16
Started 11/8/2013
Started 11/8/2013

Most Read This Week

October 29, 2014 8744

UPDATE: Medical Examiner's Official Report…

in Local (Lakes) Top News by Dennis Thomas
October 24, 2014 7498

Central City Man Charged with Sexual Assault on…

in Local (Muhlenberg) Top News by Chris Cooper
October 27, 2014 6028

Earlington Woman Charged With Burglary for…

in Local (Hopkins) Top News by Madisonville Police Department
October 23, 2014 4435

Don Everly to be Part of Rock and Roll Hall of…

in Top News For All Sites by Paul McRee, SurfKY News
October 27, 2014 4310

Baptist Health Madisonville Performs Baptist…

in Local (Hopkins) Top News by Kristy Quinn
October 28, 2014 3935

UPDATE: 'Runner' Ran Home; Family Happy

in Hopkins News by Lisa Crook
October 29, 2014 3826

UPDATE: Two More Arrested for Meth at Area Motel

in Local (Hopkins) Top News by Trooper Stu Recke
October 24, 2014 3812

Miners Turn Out in Madisonville for…

in Top News For All Sites by Rita Dukes Smith, SurfKY News Director
October 27, 2014 3290

Woman Charged for Domestic Assault with Scissors,…

in Local (Hopkins) Top News by Madisonville Police Department
October 28, 2014 3287

UPDATE: Extended to Wednesday; Heaven's Gates and…

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

Stories Trending Today

October 29, 2014 8744

UPDATE: Medical Examiner's Official Report…

in Local (Lakes) Top News by Dennis Thomas
October 29, 2014 3826

UPDATE: Two More Arrested for Meth at Area Motel

in Local (Hopkins) Top News by Trooper Stu Recke
October 29, 2014 2468

Hypodermic Needle Sticking Out of Jacket During…

in Local (Hopkins) Top News by Madisonville Police Department
October 29, 2014 2166

Pennyrile Gymnastic Team to Perform on 'America's…

in Local (Hopkins) Top News by Paul McRee, SurfKY News
October 29, 2014 1883

Madisonville Police Arrest Reports - Oct. 29, 2014

in Hopkins News by Madisonville Police Department
October 29, 2014 1799

Huge Crowds Visit Uncle Lee’s First Day of…

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
October 30, 2014 1554

UPDATE: Missing Elderly Couple Found

in Local (Hopkins) Top News by Chief William C. Crider
October 29, 2014 1529

Trespassing Complaint Ends with Shoplifting Arrest

in Hopkins News by Madisonville Police Department
October 29, 2014 1319

Central City Businessman Indicted by Grand Jury…

in Top News For All Sites by Charles W. Riley II, SurfKY News
October 29, 2014 1286

Water Main Break Sends Stream Dozens of Feet in…

in Hopkins News by Rita Dukes Smith, SurfKY News Director

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 © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social fbsocial twsocial yt
social gpsocial flrsocial rss