Life insurance and chessed funds

amother

Sun, Apr 12 2020, 4:52 pm

Just about every young person who is passing away is having a fund set up for their family. No amount of money will ever be enough for the widow/widower but did all these people really not have life Insurance or are they just collecting now when the pain is raw in addition to the policy? I am just curious and like I said no amount of money will every be enough....

cnc

Sun, Apr 12 2020, 5:24 pm

I have a 500k policy.
My kids are young .
That amount is a complete joke if I consider how much is needed to support them from now until they’re married including Simchas, weddings, and taking into account the loss of income .

amother

Bisque

Sun, Apr 12 2020, 5:39 pm

My husband canceled his life insurance policy awhile ago because it was too expensive. We both had no idea there were cheaper options until I read about it on imamother last week. He’s going to check into it now that he knows it is affordable.

nanny24/7

Sun, Apr 12 2020, 6:50 pm

Let's not judge.
I personally know people (young parents) who tried buying term life insurance but were disqualified from all plans they tried getting because of too many underlying medical conditions. These same people with underlying conditions would be more at risk for dying from covid 19 too.
How sad.

amother

Copper

Sun, Apr 12 2020, 6:56 pm

I lost a parent many years ago money was rasied for my family long before the days of social media. There was a small life insurance policy that was used for certain expenses and the money raised was used differently and kept separate. I think the problem comes when the main breadwinner passes away it becomes a huge hit.

amother

Sun, Apr 12 2020, 7:12 pm

cnc wrote:

Agreed. I’m curious if the ppl passing away had a smaller policy or none at all. I’m hoping most had something but just not enough...

amother

Dodgerblue

Sun, Apr 12 2020, 9:08 pm

Good luck getting life insurance if you have a pre-existing condition. My husband A'H, had and he could not get life insurance.
And I imagine with this virus, most of those who are niftar, had prior health issues.

banana split

Sun, Apr 12 2020, 9:12 pm

Had the same question. I feel so bad for people who don’t have life insurance. This is why everyone should get when you’re young and before pre existing conditions. (Most people in their 20s are healthy/ not talking about the minority who are ill) so everyone who sees this thread should Make sure to get and to also reach out to younger siblings and make sure they have. There is no way that everyone will be able to support all these families that are Nebach losing parents during this terrible pandemic.

mra01385

Sun, Apr 12 2020, 9:20 pm

Both my husband and I qualify for life insurance and we both have preexisting health conditions. My policy is small but at least it’s something, and my husband just switched to a new policy and got approved for a nice amount as well.

amother

Lilac

Sun, Apr 12 2020, 9:21 pm

I’m not sure what you mean by “no money will ever be enough” if managed properly, 1mil can last a long time- with the goal being to get the children to their weddings etc.’likely the remaining spouse will work to help support, yeshivas will slash tuition payments etc and home and monthly costs will be paid out of the allowance from the invested insurance payout. The key point here being that the money is managed properly by a financially knowledgeable person.

amother

Orchid

Sun, Apr 12 2020, 9:25 pm

But likely the spouse's expenses will go up significantly. Extra childcare, household help, convenience foods, disposables - all things that perhaps a married couple can do without are much harder as a single parent.

Saying that the yeshiva should slash tuition is just moving the burden over, not mitigating it. So the yeshiva needs to raise money instead of the family? Many would say that it is easier to raise for a tragedy...

amother

Lilac

Sun, Apr 12 2020, 9:33 pm

amother [ Orchid ] wrote:

Mostly true. Regardless of what a widow has in the bank, yeshivos are not charging Them much tuition unless the widow offers it. And the 1 million is not supposed to replace the widows income- it’s a supplement so that they can get by. Many “regular” families are getting by on much less, or struggling without an end in site. 1 million is nothing to sneeze at. And again, if it’s a large family, the primary breadwinner should have multiple policies to cover expenses. They should not be put on the community because they couldn’t afford premiums. It’s a cost of life, just like a place to live is. For people with preexisting conditions, the reason it’s hard to get a policy is precisely because they are more at risk of the policy needing to be used. Which is all the more of a reason to make sure the persons family is Financially protected before having children.

asmileaday

Sun, Apr 12 2020, 9:36 pm

Correct me if I'm wrong but I think the idea is to invest the life insurance money (obviously with smart financial advice) so that the family can live off the interest/dividends (or whatever it's called, I'm not very savvy in this area).
Not necessarily to use up the 1 million on daily living expenses. 1 million if not invested gets used up really quickly. Especially if the family has marriageable age children.

cnc

Sun, Apr 12 2020, 9:37 pm

amother [ Lilac ] wrote:

When the remaining spouse works , other expenses increase such as childcare and housekeeping .

amother

Lilac

Sun, Apr 12 2020, 9:41 pm

asmileaday wrote:

Correct. Most daily living can be pulled from the remaining spouse’s income. A portion of the payout may need to go toward paying off the house, with the remaining in a fund that will produce dividends and get all kids to the chupa. And if 1mil is not enough to protect the family through that, another policy needs to be purchased- not relying on fundraising to make up the difference.

This is not c’v to criticize those who have died without these precautions in place. Just to serve as a reminder that people MUST wake up and take care of this for their family’s and communities sake

amother

Ivory

Sun, Apr 12 2020, 9:41 pm

Be careful before you post here.

Firstly if there are any family members reading this you don't want to cause them anymore pain.

Secondly if you aren't giving major money to those Chesed funds MYOB about what financial arrangements people should have had. No one asked you and now is too late

Thirdly don't be so quick to talk. I remember a big complainer about the collections for those who don't have life insurance...Until her husband died and a collection was taken up for her family...
(yes her husband did have life insurance but not enough)