You buy a life insurance policy. Filling out the form, you accidentally list your age as 35 when you’re really 36.
Forty years pass. Eventually, you die during an ill-advised hang gliding stunt. The insurance company, going through your heirs’ claim, figures out that your age was listed wrong. They use the mistake as an excuse to void the policy. “Sorry,” they say, “the insured had a serious misstatement on official documents. Hope you enjoy poverty.”
That situation can’t happen with an incontestability clause. The provision bans companies from declaring a life insurance policy void due to a misstatement by the person buying the coverage. Usually, the incontestability clause kicks in after you’ve had the policy for a certain amount of time.
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Finance: What is a Commitment Letter?5 Views
Finance a la shmoop what is a commitment letter? dear Rebecca it's been fun and
all but asking me to move in with you was a real turnoff so uh have a nice [Rebecca reading letter]
life yeah that would be a fear of commitment letter I know that one well
well so what's a commitment letter then all right well you need dough but you
don't need it today you need it in six months when construction is finished on
your cabin by the lake at that point you'll convert your very expensive
building loan into a normal mortgage well you can go to the bank and for a [Man walks into bank]
small ish fee get a commitment letter from them which stipulates that assuming
nothing material changes between now and then you will in fact then get a loan
for one hundred fifty two thousand dollars at 5 percent fixed interest rate
for 30 years the bank is then committed to giving you that loan when you know [Contract stamped with committed]
eventually you need it that way you don't have to worry about your bank you
know breaking up with you which is nice because it's tough getting
the It's not you it's me speech from a guy in a bowtie [Man wearing bow tie talking to a man in the bank]
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