Friday, September 25, 2015

#LIAM2015: What's it's *Really* All About

So, two decades ago, George bought a 20 year level term policy. Two months ago, the initial rate guarantee period ran out, and his premium shot up dramatically (as they are wont to do). A month or so ago, we met to discuss options, at which time he decided to "let it ride," at least for a while.

Three weeks ago, he died on the operating table from a stroke.

Yesterday, I met with his widow to finalize the death claim paperwork (it took several weeks for the official death certificates to be processed).

And in another week or so, I will deliver a check for $250,000 (plus interest) to her.

There is really nothing remarkable about this process; after all, everything went as it should (save for the delay on the death certificates, which was out of our control).

And yet...

And yet, there is everything remarkable about it: over the years, George paid in several thousand dollars in premiums, a mere fraction of what his widow will receive. When we met last month, he was considering applying for a new policy with lower premiums and, of course, a lower face amount.

But he let it ride.

And in a week or so, I will be the only person in his widow's life who will be giving her money.

It just doesn't get any better than that.
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