There’s an adage in the life insurance industry that goes something like this.
“Life insurance underwriters know exactly how many people are going to die this year, they just don’t know their names. If you want to know the names, you have to ask the big guy in the back of this Gin joint.”
(Yes, I used to support myself as a Life and Health Insurance agent.)
The first sentence provides the truth, the second is just there to get the listener to pay attention and remember that truth.
In the mid to late 2000’s Mutual of Omaha came out with “Critical Illness Insurance”. The basic idea was If you were diagnosed with a Heart Attack, Stroke, Cancer, or a few other conditions you would get a lump sum payment. No need to die to get the money either and you can use the money for whatever you need or want.
I bought one of those policies. My policy had a face value for ‘minor’ problems like an angioplasty, stent, or “in situ cancer” of $15,000. But, if I got a life threatening diagnosis, like a heart attack or cancer that’s spreading, then the face amount is $60,000.
Found out today that I get the larger amount. Financially, that’s a really nice turn of events. The problem with getting the larger amount is that I understand that the doctors and underwriters at Mutual of Omaha who decided what my policy will pay out, are darn good at their jobs.
Tomorrow I talk with my doc to figure out the plan for going forward.
Statistics suck, the threat is statistically real, but they still don’t know the names…