How are you preparing your family for the inevitable, life insurance/will/etc?
How are you preparing your family for the inevitable, life insurance/will/etc?
My girlfriend's mother just passed unexpectedly this week. She hasn't updated her will since the mid 80s, she had no medical directive, and seemingly did not have her life insurance long enough that they would cover anything, they are just refunding what she has paid to the present.
This has us both thinking about getting ourselves set up properly just in case. We haven't paid it much mind until now as we don't have all that much, and no kids, but now that we are seeing the difficulty not having those things brings when people least need added stress, we want to start pursuing it.
What have you done to prepare your family for these types of events and how did you determine what sort of insurance and plans you needed for your situation. Also have you ever either had to deal with a relative leaving no plans behind, or did someone do something that made the situation much easier?
You're viewing a single thread.
they are just refunding what she has paid to the present
Lol wat
The summary I got was she had this insurance for a 18 months maybe, so they said they aren't paying, let's say 50k, they're just refunding her payments for those 18 months, say 1500 instead.
It does sound a bit scummy to me but I have no clue how the rules of this stuff work, hence my question.
There is got to be some provision that got triggered that's not being mentioned... This fact pattern on its face is what is called a scam in common man speak
I just googled it:
Exclusions and Limitations During the first two years, if you die from natural causes (any cause other than accidental), your beneficiaries will receive all premiums paid, plus 10%. After two years, the full benefit is paid for death due to all causes. For accidental death - independent of sickness and all other causes full benefits are paid from the first day our policy is issued. (All benefits will be paid less any outstanding policy loan.)
Sounds a bit useless to me. The rules are definitely in the house's favor.
They don't want you planning to kill yourself or waiting until a terminal diagnosis to get life insurance.
It makes sense in a way that benefits the insurers. She had no clue anything was wrong with her so it stinks for her family.
The how always wins because house writes the rules. It requires a sophisticated buyer etc and they know most people are not that.