Life Insurance for 86 year mom

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Posted: Tue Sep 15, 2009 4:10 pm Post subject:

A couple infinitely important facts this article doesn't clarify:

Quote:

According to the complaint, the Benensons were supposed to pay about $23.5 million in premiums during the first three years of the policy, but also get back about $3.7 million in a partial surrender. Meanwhile, the policy proceeds were to decrease from $60 million in the first year to $48.5 million in year four, after which the plan was to pay $48.5 million regardless of when Jane died.

The policy only had a $60 mil death benefit FOR THE FIRST YEAR (the year it was backdated) and the death benefiit was reduced to $48.5 at the beginning of the second year. The first year, they paid nearly $7 mil for a $60 mil policy that never existed because of the backdating. The second year - the first year the policy would have actually been in force, the death benefit was reduced to $48.5 and the premiums reduced to $6.7.

During my deposition, I was questioned by a team of defense lawyers about Vanishing Premium Fraud for roughly 6 hours. These people (who were being paid extremely well to know all they could about life insurance) claimed that in some cases, a policy's premium could indeed vanish and because I wasn't an expert in economics there was no way I could possibly understand that.

Besides; Charles Benenson's son, William, a Doctor who had written a thesis on the Theory of Probability, had actually sat in on a number of the meetings and overseen the transaction. I was asked, "are you claiming that you know more about life insurance than a doctor who has done extensive research on the Theory of Probability and how this relates to life insurance?"

"I acknowledge that Mr. Benenson's son, William, is a very intelligent man but, if he sat in on these transactions and actually approved them with his father, he obviously doesn't know jack about life insurance and the ways in which it is sold, or mis-sold in this case. I'm certain I could educate the good doctor on the theory of "what in the hell are you talking about?"
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