I remember many years ago when my grandparents belonged to a "Burial Association". The deal was that you committed to give a small donation to the Association anytime a member died. It was only a couple of bucks back then, probably the equivalent of about $10 these days. The proceeds were passed along to the decedent's family for expenses.
Those life insurance policies you see advertised by Alex Trebek perform the same function except a middleman is skimming 20% to 30% off the top and if you miss or delay one payment you're out.
My sister received a 'pile of cash' when her 36 year old husband died. I heard it was 'enough money to live off of for the rest of her life'. Well, that was wrong.
It's really expensive, for one. The general goal is to provide for your burial expenses and to provide for your beneficiaries what you would have provided if you were still there. I don't have a spouse, so I'd largely just be providing for my kids, but my ex makes something like 3-4-times as much as I do. He used to be the sole breadwinner and I was a stay-at-home mom. My kids will be provided for as long as he's alive. If he dies, on the other hand, it'll be ugly. At first, I was petrified about what would happen and I looked into insuring him- a policy that would provide roughly the same that his child support would have until the kids turn 20. People have to go through an exam and everything before approving a policy of that magnitude, but the insurance guy ballparked me at about $300 per month because my ex has a number of conditions that increase the rates. I was like, shoot... if I could set aside $300 per month and just tuck it into savings, I'd call it good. Not happening. In any case, he lost his job right after I started getting quotes and didn't work for a year, so I got a good taste of what it would be like. It was ugly, but we got by. I'm not going to bet on him dying- that's all the policy is- a bet that you think the person will die... at least with term life. Whole life is different, but it's even more expensive. Anyway, yeah, I'm sure if I bet $300 a month for the next 15 years or so that he would die, he'd live for 16 just to spite me. lol
I have never understood life insurance, If I die i 'win' and get a lot of money that I cannot use.
I once read a story about a guy who faked his own death after arranging with his with that they would meet in South America after and live there happily there. Unfortunately she fell in love with a charming fellow passenger on the plane and ran off with him (and the money).
Hmm. Can you get a policy where the money is handed to you personally, just before the lid is nailed on ?
This post was edited by WM BARR . =ABSOLUTE TRASH at September 7, 2017 3:38 PM MDT
Element 99 