Comes a story from a financial planner…
“…a wealthy LA philanthropist, on the advice of his financial planner, purchases a $10 million life-only annuity following a purchase of a Jumbo size universal life policy.
…The philanthropist was an A++ risk and also a tri-athlete. About 4 months after purchasing the coverage’s he was in a head on collision with a drunk driver.
…The philanthropist didn’t die. He was declared “permanent and stationary” after about 8 months of rehab. However, he was burned significantly and had no use of his legs or left arm.
His family secured his release from rehab and took him home under private nursing care in Beverly Hills. Once home, he somehow managed to locale a revolver hidden in a bedroom end table by rolling out of bed, onto the floor and crawling to the location. He took his life. You can imagine what happened.
The kids wanted to know what happened to Dad’s $10 million! The annuity terminated and the insrance company didn’t pay the claim due to suicide so they returned the premium.”
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It can (and does) happen all the time. One minute you’re on the top of the world. The next, you’re blowing your brains out.
All that money. Gone.
The family? Ruined.
The agent and financial planner handling the case? Well, they got sued and ended up going bankrupt. But, it never made the family whole (the lawyers made sure of that).
Now, there are many things the financial planner an insurance agent could have done differently…
…and lots of things YOU can do differently if you’re ever in that situation (whether as the surviving family or the one in the accident).
One thing is to make sure you’re flush with the green stuff. Another is to make sure your insurance isn’t made null and void due to suicide clauses.
And yet another is to hire someone to help you make a good insurance plan so it never becomes a problem in the first place.
The world keeps turning. You have a decision to make. “No” is a perfectly legit decision. But, the consequences for doing nothing are bigger than Donald Trump’s hands.
It’s your call.
David Lewis