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...

Lady Blazers Capture Second Region All 'A' Championship

MARION, Ky. (4/17/15) — The University Heights Academy softball team won its first Second Region All "A" Classic title… Read More

WellCare Gives $12,000 to Marshall County Initiative to Improve Youth Activity, Nutrition

KENTUCKY (4/16/15) — WellCare Health Plans, Inc. (NYSE: WCG), a leading provider of managed care services for… Read More
1 DOW 17,826.30
-279.47 (-1.54%)    
2 S&P 2,081.18
-23.81 (-1.13%)    
3 NASDAQ 4,931.81
-75.98 (-1.52%)    

Most Read This Week

April 13, 2015 6144

Three Juveniles, Adult Accused of Vandalizing…

by Deputy Will Coursey
April 14, 2015 4782

Several Juveniles Charged in Connection with Fight

by SurfKY News
April 16, 2015 3328

Crime Stoppers Fugitive of the Week – April 16,…

by Hopkinsville – Christian County Crime Stoppers
April 17, 2015 3196

An Open Letter from an Addict

by Olivia Kirks
April 11, 2015 2956

Juvenile Injured When Struck by Vehicle

by Madisonville Police

Most Read This Month

March 18, 2015 10042

UPDATE: Hanson Man Located in Henderson, Taken to…

by Trooper Stu Recke
April 02, 2015 8426

UPDATE: Madisonville Man Injured in Head-on…

by Doreen Dennis, SurfKY News

Stories Trending Now

April 17, 2015 3196

An Open Letter from an Addict

by Olivia Kirks
April 17, 2015 1002

Madisonville Police Reports Released

by Rita Dukes Smith, SurfKY News Director
April 17, 2015 965

Two Charged in Connection with Powderly Firearms…

by SurfKY News
April 18, 2015 848

Man Charged with Attempting to Coerce Minor for…

by Madisonville Police Department
April 17, 2015 845

Police Officers Building Up Community by Helping…

by Doreen Dennis, SurfKY News
April 17, 2015 768

Hopkins County Sheriff's Reports Released

by SurfKY News
April 17, 2015 555

'The Bidding is On' at Annual Library Auction

by Tammy Holloway, SurfKY News
April 17, 2015 452

Brown Pitches Baseball to Series Opener over…

by UK Athletics
April 17, 2015 419

Free Seedling Plantings Available While Supplies…

by Amber Averitt, SurfKY News