dave says2 300KENTUCKY (8/17/14) — This week Dave discusses asking for a raise and paying the insurance penalty.

Dear Dave,

What’s your advice on asking for a raise at work when you have more responsibility than a co-worker but the same title on paper? After being with my company four years, I feel like I should make more money and I have the right to complain about this.

Vanessa

Dear Vanessa,

Sorry, no. You don’t have a right to complain. You agreed on your pay, and you are doing your job the way your character and integrity tell you to do the job. If someone else is a slacker in the same position, that doesn’t mean a whole lot in terms of your personal compensation.

I’ve got several people at my company who hold similar positions and make similar money. Some of them have been here for years, while others are relatively new. I don’t pay people for how long they’ve been in the building, and I don’t want anyone on my team who doesn’t give 100 percent. Now, that may be a different issue than pay, but at the same time I don’t want someone who gives 50 percent and I pay them 50 percent. I want everyone at 100 percent, but that kind of thing isn’t your problem. It’s the company’s problem, because she works for them and not you.

If you honestly feel like you deserve a raise because of your effort and performance, that’s fine. Sit down with your leader and make a logical and reasonable argument for why you deserve more money. But don’t bring up your co-worker and what he or she makes in the discussion. That’s just not relevant. What is relevant is your worth and the value you bring to the organization.

But a comparative analysis with someone else on staff just isn’t a good idea. I’d stay away from that, Vanessa.

—Dave

Dear Dave,

My wife and I live in New York, and we’ve had whole life insurance for several years. There’s a seven percent penalty if we cash out the policies now. If we wait a few years, we won’t have to pay into the premiums anymore. Should we cash out the policies anyway?

Brian

Dear Brian,

The reason you won’t have to pay into the premiums anymore is because you built up enough savings, and they are not paying you enough on the savings to amount to anything. The amount they should have been paying you versus the way they were ripping you off will buy the life insurance.

It’s not like you can pay for it because you still have probability of death. As long as there’s a probability of death there’s a cost to life insurance. The only question is whether you’re paying out of your savings account or your checking account. In this case, you’re paying out of savings.

The seven percent figure is just your surrender charge, so I’d get out of that policy soon. Here’s the problem, Brian. If you die today, do you know what they’ll pay? Face value. They won’t pay face value plus the savings you paid for. In other words, you’ll lose your savings.

I’d get term life insurance in place by the end of the week. Compare prices on term, because you’ll be surprised at the difference some companies charge for term insurance. Make sure you get good 15- to 20-year level terms policies valued at 10 to 12 times your annual incomes.

—Dave

Dave Ramsey is America’s trusted voice on money and business. He has authored five New York Times best-selling books: "Financial Peace, More Than Enough," "The Total Money Makeover," "EntreLeadership and Smart Money Smart Kids." The Dave Ramsey Show is heard by more than 8 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.

LIKE SurfKY on Facebook - Click here to LIKE us now.

© 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.

In Other News...

Cadiz Police Arrest Reports - March 24, 2015

CADIZ, Ky. (3/24/15) — The Cadiz Police Department released the following reports. Officer Tyler Thomas arrested… Read More

Col. Stephen Trigg Chapter SAR to Honor Local Vietnam War Veterans on March 29

KENTUCKY (3/26/15) — The Col. Stephen Trigg Chapter of the Sons of the American Revolution is making a deliberate… Read More

Most Read This Week

March 18, 2015 9413

UPDATE: Hanson Man Located in Henderson, Taken to…

by Trooper Stu Recke
March 18, 2015 6808

UPDATE: Name of Pedestrian Killed on Western…

by Trooper Stu Recke
March 24, 2015 4838

One Dies, Another Injured in Mortons Gap Traffic…

by Deputy Heath Owens
March 25, 2015 4808

Fazoli's, Roses Coming to Madisonville

by Amber Averitt, SurfKY News
March 25, 2015 4714

Grand Jury Finds No Criminal Wrongdoing in Bean…

by Doreen Dennis, SurfKY News
March 24, 2015 3979

UPDATE: One Injured in Hopkinsville Road Accident

by Doreen Dennis, SurfKY News

Most Read This Month

February 25, 2015 13777

Multi-Agency Investigation Nets Large-Scale Meth…

by Trooper Stu Recke
March 09, 2015 12798

Multi-Agency Drug Bust Results in $1 Million Meth…

by KSP DESI

Stories Trending Today

March 25, 2015 4808

Fazoli's, Roses Coming to Madisonville

by Amber Averitt, SurfKY News
March 25, 2015 4714

Grand Jury Finds No Criminal Wrongdoing in Bean…

by Doreen Dennis, SurfKY News
March 25, 2015 3622

Madisonville Man's Living Room Leap Lands Him in…

by Madisonville Police Department / Hopkins County Detention Center
March 25, 2015 3132

Rep Brent Yonts' Letter to TVA concerning…

by Brent Yonts
March 25, 2015 2254

Alleged Speeding in School Zone Ends in DUI Arrest

by Madisonville Police Department / Hopkins County Detention Center
March 25, 2015 1560

Greenville Man Charged with Theft of Vehicle

by Wes Miller
March 25, 2015 1554

Crime Stoppers Fugitive of the Week – March 25,…

by Hopkinsville – Christian County Crime Stoppers
March 25, 2015 1287

Madisonville Police Arrest Reports - March 25,…

by Madisonville Police Department
March 26, 2015 1285

‘Chasing Rainbow’ Heart Walk Raises Funds for AHA

by Tammy Holloway, SurfKY News
March 25, 2015 1223

Hopkins County Sheriff's Reports Released

by Hopkins County Sheriff's Office