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.

Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013
Started 11/8/2013

In Other News...

Mayor Ron Payne Selected as 2014 Elected City Official of the Year

OWENSBORO, Ky. (9/15/14) — City of Owensboro Mayor Ron Payne was selected as the 2014 Elected City Official of the Year… Read More

Team KAM Barely Edges River View Coal for the Win

HENDERSON, Ky. (9/15/14) — Team members sponsored by Kentucky Association of Manufactures of Frankfort won the 2014… Read More
Started 11/8/2013
Started 11/8/2013

Most Read This Week (Site-Wide)

September 12, 2014 17135

Woman's Body Found in Theater Day After…

in Top Stories by Rita Dukes Smith, SurfKY News Director
September 13, 2014 3489

MPD Responds to a Disturbance at Baptist…

in Top Stories by Madisonville Police Department
September 11, 2014 3176

Subject of Officer-Involved Shooting…

in Top Stories by Rita Dukes Smith, SurfKY News Director
September 11, 2014 2539

Suspect Arrested for Possession of…

in Top Stories by Madisonville Police Department
September 11, 2014 2418

Two Accidents Occur on U.S. 62 Within…

in Top Stories by Trooper Stu Recke

Most Read Stories from Hopkins County

September 13, 2014 3489

MPD Responds to a Disturbance at Baptist…

in Top Stories by Madisonville Police Department
September 11, 2014 2539

Suspect Arrested for Possession of…

in Top Stories by Madisonville Police Department
September 11, 2014 1996

Three Injured in Early Morning Two-Car…

in Top Stories by Officer Falon Graham
September 12, 2014 1866

Madisonville Man Arrested for Disturbing…

in Top Stories by Madisonville Police Department
September 12, 2014 1545

Earlington Woman Jailed for Trying to…

in Top Stories by MPD Officer Matt Sanderson

Most Read Stories from Owensboro

September 11, 2014 1470

Owensboro Police Department Activity…

in News by Dennis Beard, SurfKY News
September 11, 2014 1427

Owensboro Parks Plans Fall Day Camp

in News by Brittni Bunn
September 11, 2014 1209

Special Events Committee Meeting Date,…

in News by Beth Cecil
September 11, 2014 1209

Daviess County Public Library Plans Events

in News by Leslie McCarty
September 12, 2014 1156

Ursuline Presentation 'Spirituality of…

in News by Jennifer Kaminski

Most Read Stories from Muhlenberg County

September 11, 2014 3176

Subject of Officer-Involved Shooting…

in Top Stories by Rita Dukes Smith, SurfKY News Director
September 11, 2014 2418

Two Accidents Occur on U.S. 62 Within…

in Top Stories by Trooper Stu Recke
September 15, 2014 2177

Man Accused of Stalking Woman During Her…

in Top Stories by GPD PIO Wes Miller
September 11, 2014 1918

Job Corps Students Volunteer with…

in Top Stories by Karen Robinson
September 12, 2014 1833

Paradise Residents Plan First Reunion…

in Top Stories by Paul McRee, SurfKY News

SurfKY News Group, Inc. Central Office & Printing Division
1125 Nebo Rd.  •  Madisonville, KY 42431  •  270.452.2249 (fax)
Main Number: 270.452.2727 (phone)  •  Printing Division Direct Line: 270.821.8600 (phone)

SurfKY Owensboro News Bureau
920 Frederica St. / Suite 210  •  Owensboro, KY 42301  •  270.683-8060 (phone)


Contact a member of our staff: www.surfky.com/contact
Copyright © 2014 SurfKY News Group, Inc.  •  Terms of Use  •  Site Map

social 03social 04social 22social 21social 06