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

Dave Says – February 10, 2013

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 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.

In Other News...

Central City Man Charged with Sexual Assault on 16 Year Old

MUHLENBERG COUNTY, Ky. (10/24/14) — The following story is reprinted with permission of the News-Democrat & Leader in… Read More

7.2 Miles of U.S. 62 to Receive Blacktopping

HOPKINS COUNTY, Ky. (10/23/14) — A 738,941 contract has been awarded to Road Builders for blacktopping a 7.2-mile… Read More

Most Read This Week

October 20, 2014 6868

Uncle Lee's in Greenville is Closing Its Doors…

in Local (Muhlenberg) Top News by www.unclelees.com
October 19, 2014 4639

Kentucky Energy Department Releases Virtual Solar…

in General News For All Sites by Dick Brown
October 18, 2014 3570

Muhlenberg County Celebrates New Farmer’s Market

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
October 21, 2014 3462

UPDATE: Pedestrian Struck by Vehicle on Shamrock…

in Local (Hopkins) Top News by Officer C.P. Haynie
October 20, 2014 2892

Man Charged for Assaulting Pregnant Wife

in Local (Hopkins) Top News by Madisonville Police Department
October 23, 2014 2890

Resident Returns Home to People Using Drugs,…

in Local (Hopkins) Top News by Madisonville Police Department
October 22, 2014 2879

Hopkins County Grand Jury Indictments

in Hopkins News by Karen McKnight
October 21, 2014 2781

Madisonville Police Arrest Reports - Oct. 21, 2014

in Hopkins News by Madisonville Police Department
October 20, 2014 2582

Hopkins County Sheriff's Arrest Reports Released

in Hopkins News by Sheila Hopper
October 22, 2014 2352

Failure to Signal Ends in Drug Arrest

in Local (Hopkins) Top News by Madisonville Police Department

Stories Trending Today

October 23, 2014 2890

Resident Returns Home to People Using Drugs,…

in Local (Hopkins) Top News by Madisonville Police Department
October 23, 2014 2026

Man Arrested for Endangering Welfare of Minor

in Local (Hopkins) Top News by Madisonville Police Department
October 23, 2014 1962

Muhlenberg District Court Fines Handed Down

in Local (Muhlenberg) Top News by Charles W. Riley II, SurfKY News
October 23, 2014 1891

Madisonville Police Arrest Reports - Oct. 23, 2014

in Hopkins News by Madisonville Police Department
October 23, 2014 1864

Hopkins County Health Department Food Scores Thru…

in Hopkins News by Lisa Miller
October 22, 2014 1485

Build, Go and Grow Regional Entrepreneurship…

in Top News For All Sites Touching Hopkins by Patricia Wiles
October 24, 2014 1394

Woman Arrested for Allegedly Reporting Check…

in Local (Hopkins) Top News by Madisonville Police Department
October 23, 2014 1231

America Should Not Go Greek in the Bathroom

in General News For All Sites by Dr. Glenn Mollette
October 22, 2014 1162

Come Monster Mash at the Museum This Saturday

in General News For All Sites by National Corvette Museum
October 23, 2014 1157

Vocational Rehabilitation Seeks Public Input Nov.…

in General News For All Sites by Kim Brannock

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