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 Comfort Letter?6 Views
Finance a la shmoop what is a comfort letter? S....See the smooth curves there is [An S letter appears]
that comforting okay okay comfort letter is a letter
this kind of letter written by an expert usually someone like an auditor or a tax [Expert appears with comfort letter]
attorney in one form or another who has done deep due diligence into a company
looked at myriad details and data and volume counts of plastic cubes in their
inventory and then they've looked at their distribution contracts
you know with truckers and retail stores and drone deliverers and then they've [Drone flying in the air]
looked at their bank accounts both the onshore ones and the offshore ones that
you know they don't really like to talk about and then about 87 ish other things
that all those people look at and then they write a letter like an actual
letter which is usually given to the Board of Directors or an acquirer or
the investigating party whoever that is and that letter states that what the
company says it has or does is in fact what it has or does which is a good [Man discussing comfort letters]
thing to know so this letter well it just gives comfort to everyone
the only challenge can be you know trying not to become too comfortable [Man working near a waterfall]
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