Life Insurance: A little chuckle, for everyone......

treeguy64

treeguy64

Hari Om, y'all!
Location
Austin, TX.
I recently called my term life policy provider, on my birthday, to see why I hadn't received a bill for this year's premium. I was told that they had mailed it out, and I had a thirty-day grace period to pay up. I asked how long my policy continues, as I bought it a good while ago. The phone rep told me that it was a thirty-year term policy. OK. So, it continues for a few more years. I pay a modest $335/yr. The phone rep then asked me if I wanted to know the premium for year thirty-one, should I want to continue. I actually heard a little mischief in her voice, when she asked me that question. "Sure," I answered. She replied, "$16,494.00." "WHAT????????????? Sorry, my hearing is not great, can you repeat that!" She did. I started cracking up, laughing uproariously. "I get it, you don't want to insure old people. Great. Well, I know I won't have to sweat, when that thirty-first year payment is due, because I won't ever be mailing it! Bye!"

I understand actuarial science, I get it, that insurance companies are in it to gamble on you, with the odds greatly in their favor. Thing is, couldn't my provider have not been quite so obvious? Apparently not....... 🤣
 

I think that's terrible. You do want your family to receive something after you die and the insurers make that impossible.
 

I don't have any kind of life insurance. When I die I told my daughter to have me cremated and disposed of the cheapest way possible (I'll be dead and won't know anything). She'll get whatever is left, I don't owe her an inheritance, just like I didn't expect one from my parents.
 
I have heard of even worse. When people retire from the military they can take a slight reduction in their retirement pay in order to provide up to 55% of their retired pay to their wives if they leave the planet first. They can also forgo protecting their wives and not participate (with the wives signature). I have personally known two people who were "clever" and saved a few bucks by buying cheap term life insurance policies instead. In both cases, the cost of renewing those "cheap" policies after the age of 70 was over $4000 a month since they also had rather normal age related health issues. They could not afford to renew, and after their deaths the wives got nothing from the military.

These insurance companies know how to play this game, … they don't lose money.

This is a strong argument for participating in Survivor Benefit Plans and for having purchased at least a small whole life policy at an early age when it is still affordable.
 
My term life policy went up like that too so I let it lapse. My wife will get 1000% of my pension if I go first and we now have more than the policy amount in our investment account.
 

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