Birthday Surprise!

mickeyd

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2014 L3200 DT w/LA524 FEL, 2019 Kubota Z121S w/ 48" Pro Dec, TG1860G w/RCK54TG
Mar 21, 2014
1,190
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Guin, AL
I got a letter from my Life Insurance company for the past 40+ years that stated:

Congratulations on your up coming 70th birthday. We must inform you that you have OUTLIVED your Life Insurance and it will TERMINATE one month after your birthday.

What a shock. Of course I had forgotten ALL about that CLAUSE. Yes I can covert it to another policy of 1/10th the value for a much higher premium.

HAPPY BIRTHDAY SUCKER!!!
 
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CaveCreekRay

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L3800 HST, KingKutter box scraper, KingKutter 66" rake, County Pride Subsoiler
Jul 11, 2014
2,632
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Cave Creek, AZ
Congratulation on not using your life insurance!!!

You dodged a bullet the rest of us will have to face very soon.

(A heads up for insurance holders/beneficiaries... Sorry to bring bad news.)

Insurance is a business where they take your premiums and invest them. The interest they get pays for claims and running the business. What is left over is all profit. By making up the actuarial tables, they ensure that they will end up with a profit. Insurance companies have been one of the most consistently profitable businesses around...until today.

With the Fed lowering rates, the banks and other investments are only paying a fraction of the 6-10% they need for a profit. The result is, either some businesses will stop issuing insurance, or rates will double or triple. The alternative is to go out of business.

Same with pension plans. Their whole business model is to make returns of 6-10% and they are lucky to see 2%. Most pension plans around the USA are grossly underfunded and the demographics are grim: There are more retirees lasting longer and longer and its taking more employees to support those insurance plans. It used to take 2.5 employees to handle each retiree. Now its upwards of ten employees. With downsizing due to the bad economy, there aren't ten employees to support each retiree, so the plan is underfunded.

Uncle Samuel decided they would get into the pension guaranty business about twenty years ago. Like every big-government operation, they are grossly underfunded after totally misjudging the coming crisis, even though they only pay 10 cents on the dollar for every retiree payment they assume.

Cancelling people like Mickeyd will become a more common occurrence, even for plans not specified with a "drop dead date." (Sorry for that!)

Until sanity returns to the investment markets and interest rates return to healthy levels, we may see it nearly impossible to get insurance over the next few years. Meddling by the US Fed has created a huge bubble in the stock market and that bubble is about to burst, further threatening pension plans which are heavily invested in stocks.

The central banks around the world are actually into negative interest rates which means it costs you to save and they pay you interest to get a mortgage. This kind of lunacy is unsupportable and indicates we are getting near the end of the crack party the world economy has become. Too many promises from big government for too many social programs has finally led us to where we are.

Make plans accordingly...

Ray

PS: Like MickeyD, my wife is a military retiree. The current administration has repeatedly tried to lower retirement benefits on retirees. My wife and I are expecting a "sunset date" on government retirement for military members. In other words, after a certain age, your retirement benefits end. Sad but, with the coming crash after 60 years of deficit spending by both parties, the handwriting is on the wall.
 
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D2Cat

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Mar 27, 2014
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40 miles south of Kansas City
Why would the ins. company be sending you a letter for 40 years telling you about your upcoming 70th birthday? Do they really think that far ahead?

A term life ins. policy is for a TERM. When that specified date arrives the ins. is terminated.

If you had a Whole Life policy from the beginning, it would have cost about 10 times the premium, but it would last your whole life. Sound good, but it is really not a good method of insurance, because the high cost is suppose to be set in a protected interest rate to go into you account.

Sad to day, but at 70 you just need enough for a burial.

Go enjoy the day, and quit worrying!
 

Corney

New member

Equipment
L1500DT, front end loader, mower, tiller, snow blower
Happy 70 th Birthday!

I am only 51 and insurance is very expensive and still a requirement in my life.


I hope to be in a situation when I'm 70 that We have enough for my Bride to maintain the lifestyle she deserves should I pass on. My sons are already self supported so they are no longer a concern.
 

Tooljunkie

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L1501,home built carry all, mini plow blade.
May 13, 2014
4,129
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Lac Du Bonnet, Manitoba,Canada
One would think after paying all that money,for 40 years essentially for nothing you would have some entitlement. I dont have a very high regard for insurance companys. Pretty good at taking money, not very good when someone has to make a claim.
 

mickeyd

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2014 L3200 DT w/LA524 FEL, 2019 Kubota Z121S w/ 48" Pro Dec, TG1860G w/RCK54TG
Mar 21, 2014
1,190
14
38
Guin, AL
Why would the ins. company be sending you a letter for 40 years telling you about your upcoming 70th birthday? Do they really think that far ahead?

A term life ins. policy is for a TERM. When that specified date arrives the ins. is terminated.

If you had a Whole Life policy from the beginning, it would have cost about 10 times the premium, but it would last your whole life. Sound good, but it is really not a good method of insurance, because the high cost is suppose to be set in a protected interest rate to go into you account.

Sad to day, but at 70 you just need enough for a burial.

Go enjoy the day, and quit worrying!
Yes, I originally had a "Term" policy but at the end of the 10 year term they offered me an alternative "Modified" Whole Life policy that would keep the same payment and benefit amount until I turned 70 at which time I could convert it to a normal Whole Life policy. The trouble now is that they no longer issue "Whole" Life Insurance policies and a small clause that I did not realize is that if the company no longer offered that type of insurance I would have to use a different company.
They said that they do have an agreement with another company but that I would have to qualify for it the same as everyone else which means Medical Exam. While I am fairly healthy for someone my age, I do have some normal ailments, diabetes, high blood pressure, AS and Prostate Cancer.
 
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