This one isn’t about instant replay, or about getting robots to call balls and strikes. It’s about resolving disputes with your insurance company.
You're trying to make a jello salad, and you read the directions wrong. You end up filling your house with thousands of gallons of jello. The cleanup is going to cost thousands of dollars. You file a claim with the insurance, but they reject it. They say the fine print of your policy excludes hurricanes, terrorist attacks, and jello-related floods.
You disagree that the incident counts as a "flood." (Jello isn't a liquid, you argue, so how can it flood?) You think that your claim is valid, despite what the company says.
There is a process for figuring out which of you is right, laid out in the umpire clause. It provides for resolution through an arbitration process, where a third party looks at the case and determines whether the policy should cover it or not. They can decide if there is, in fact, always room for jello.
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Finance: What is whole life insurance?6 Views
and finance Allah shmoop What is whole life insurance Well
if health insurance is a safety net for your health
then guess what life insurance is yet a safety net
for your life I e In case you die which
unless you found the fountain of youth or a genie
in a lamp well it's gonna happen sometime with life
insurance There's the owner of the policy who is from
usually also the insured You know the person whose death
makes it rain money The person who would get that
money is the beneficiary And of course there's the insurer
the life insurance company who takes your money every month
They're also the ones that cough up a lot of
cash when you eventually bite the dust Well whole life
insurance hole there with a W is a type of
permanent life insurance That kind of investment E It's permanent
because it follows you for life like an insurance of
Grim Reaper you know always lurking in the shadows You
know whole life insurance was born from its mother term
life insurance and back in the day when life insurance
was just getting it start in life while term life
insurance was the only option Like you'd pay fifty seven
bucks for a month's worth of a million dollar life
insurance policy in your twenties if you didn't die that
month Well congratulations But then the insurance company kept all
the money you just gave them and then it would
start all over again the following month For the insured
life insurance can feel kind of like a lose lose
situation If you live well you're making payments that go
into an abyss and if you die while you're dead
But at least your kid or mom or whoever the
beneficiary is has some money Well life insurance buyers got
tired of this term life insurance gamble every month losing
all the money they gave to the insurance companies So
they began Teo What's called Oh yeah think And then
using the power of frighteningly large groups will they began
to invest the money into markets with like a thirty
year time horizon No more giving over of all that
fifty seven bucks every month to the insurance company watching
all the money go down the drain As you might
imagine the life insurance company's weren't very fund of people
getting smart on them investing their money for insurance instead
of dropping it into well you know the insurance black
hole So they decided to cut a deal with those
wanting to be insured They said We'LL cover you for
three months instead of one If you fall off a
bridge or get hit by a bus while your wife
and kids will be seeing a cool million dollars and
then they said will invest half of your monthly premium
in an index fund Yes we'LL even let you choose
which index fund we put it into and the other
half Well we get to keep And if you want
to back out and terminate the plan not because you're
in a wooden box but because you ran out of
money or moving or something Well you can keep eighty
percent of what's left in that pot Well this whole
structure for the revolved into what we have today whole
life insurance which covers you not for one month or
three but for life Remember it's permanent You could still
cancel payment or future payments but it would cost you
a pretty penny Whole life insurance includes building up savings
from part of your premium payments not watching all your
premiums go into the insurance black hole Since whole life
insurance is permanent it acts as a no touchy investment
account And because it has high fixed payouts when you
die well it's super expensive In essence Ah whole life
insurance plan is a tricycle style a handhold the investment
vehicle that tries to pull a Miley Cyrus right getting
the best of both worlds For those with the cash
and discipline and the ability Teo stay alive that we
watch out for that bus You can replace the need
to even have a whole life insurance policy by simply
buying your own shares of an index fund or mutual
fund all on your own with no insurance company middleman
taking a cut then you own one hundred percent of
the investment and all that's left to do after then
is you know not die for a decade or three
Enjoy your loot
