I inherited one of those “reverse life insurance” policies from my parents. The idea is you pay the annual premiums and when the person dies, you get the payout. I and my three siblings got a quarter of it. But here’s the rub: We had to pay the premiums for two years before she died, leaving us with about four times what we paid in. And she died at 99.
But here’s the problem with that sort of thing: It’s hard to not “hope” she dies soon. I would NEVER buy such an investment. It’s just creepy.
And yeah, if someone bought such a policy on this woman, they almost certainly lost money.
There was a story from France, IIRC, a few years back about a real estate investor that wanted a certain widow’s property, but she wouldn’t sell. She was in her early 80’s I think.
So he approached her with this deal. He would give her the money for her property now, and when she died he would take ownership, and she said okay.
She lived to be like 115 and he died 12 years before she did..............
I carry $350K in life insurance. When I was working. I carried an additional $500K through my job. I wanted there to be more than enough to take care of my husband (who has an excellent job and makes decent money) and kids if anything happened to me.
Since COVID wrecked me, I was lucky to survive to cast my 3rd vote for Trump. Still here, still existing out of spite.
Husband still works, two kids still in the house, and now I can no longer work.
Nothing creepy about a life insurance policy. It will be my last contribution to my family.
I have policies on all my kids, too. If you ever had the misfortune to bury a child, you know how distressing it can be. Far too many people get slammed when a child dies and it adds another stressor to an already horrible situation. Since they are whole life policies, they are already accruing a cash value, several thousand each so far.
I can understand your situation, though. Sorry you lost your mom.