Skip to comments.Is there a "share" life insurance plan out there ?
Posted on 06/06/2014 7:56:15 AM PDT by knarf
I've been looking into shared health plans and I'm very interested because of my age, but ..
When I DID retire and looked at the premiums and compared it to my fixed income, I determined I couldn't afford it.Is there a 'shared' plan (like the Christian health care plans) that provides life insurance ?
If not ... what would be involved with starting one up ?
Business/insurance agents/majors welcome to chime in.
This could be a golden opportunity to help ourselves.
It sounds like you might be talking about “association” type plans. Are you a member of any associations or churches? AARP? AAA? Many of those outlets have some life insurance, limited amounts, which might be affordable. Depending on the amount of insurance, you might just have to answer health questions.
Possibly some association plans might have some guaranteed issue amounts, or an option that the amount of insurance can increase, incrementally, each year that you remain living.
If you are looking at $50,000 or more, then it is likely that you will need a paramedical exam with blood draw and urine specimens, and the insurer may order medical records from your provider/s.
I figure about 10K should be sufficient to have a modest casket, a day (maybe 2) viewing and the accoutrements (cards, etc.)
Our life and living situation (barring all money disappearing from the American scene) is quite stable, but I have no burial expenses.
I thought someone might have a 50 or 100 dollar a month deal that would insure people for the basics.
If not ... How do I find out how to start a plan like that?
If I got a thousand people (about ages 40 - 70) to contribute $100 or $ 125 a month, I figure as the plan grew, there'd be more than enough money to bury ... I don't know ... 50 people a year for a minimum of 5 or 6 K.
Surely everyone that bought in wouldn't be terminal ...
Just trying to think outside of the box
You want to start an insurance company?
Seems like a lot of trouble. Buy some term life.
You should be able to find something for $10,000 to $15K of death benefit. But first check with any places where you are a member, even banks, credit cards, etc., as they might have something already set up.
I admire your entrepreneurial spirit, but you would have to actually start up a life insurance company, to do what you are talking about, and be subject to all the state and federal rules and regulations, which vary by state. You would need actuaries, have to have reserves set aside for future claims, etc., etc. Probably not something you would want to take on.
One problem with many of the older, fraternal or “debit” plans was that, as the ages of the insured individuals increased, the group got smaller for those paying in. It is similar to what we have now in the country of not very many paying taxes, and many living off their backs. So at some point, the sustainers can no longer sustain the takers.
If you got a thousand people to pay $50 a month, you would take in $50,000 per month.
Print up some tickets and give one to each person. Print a unique 3 digit number on each ticket.
Find some way of determining a winning number once per month.
Pay out $45,000. Keep $5000 for yourself. There’s your burial money.
You get a winner every month and you don’t have to die to collect!
Sheesh ... I must sound like I just crawled out from under a rock
At one time there were many local mutual insurance companies. But like govt, many of these have consolidated and centralized. If I could create a trend, local mutual companies would be it.
Here is some history of insurance:
I remember this being shown in some early movies: (Burial associations, which achieved following among African-Americans during the late nineteenth century, served as a kind of burial insurance that helped buffer the cost of funerals. For a weekly premium of 25 cents, burial associations agreed to provide a casket, burial garments, and funeral services.)
A little history on burial insurance:
Until they catch you, it is.
I used to know a bookie who ran a ticket for $20 each month. If you won, you got $17,000 in a brown paper bag.