What Am I To Bid For This Non-Working Spouse?

What Am I To Bid For This Non-Working Spouse?

If you have read all three parts of The Bounty Trilogy then you are familiar with the often overlooked, but perhaps more compelling part of the tale.  Most are familiar with the mutiny aboard the H.M.S. Bounty and of the mutineers attempting to escape the long arm of British naval law by establishing an intended utopia on the uncharted Pitcairn’s Island.

Ignored is the fate and feat of Bounty Captain William Bligh who was set to sea with his 18 loyal crewmen in the ship’s 23-foot launch with few supplies – 4,000 miles between the small boat and the nearest safe British haven on the island of Timor.

In a remarkable act of seamanship, Bligh plied the Pacific waters for 47 days bringing his men to safety, each subsisting on a daily allowance of a couple ounces of bread.  Lack of resources forced the sale of the launch to raise money for the return to England.

And there was insult to injury when the sale took place in a Dutch auction, where bidding starts at an excessive price and is slowly lowered until a buyer is found.  Few like a Dutch auction because it doesn’t create a true free market environment that results in the best price for the seller and a true opportunity for every buyer.

Consider This:

Thank goodness that when shopping carriers the bidding goes in the other direction.  Consider a recent case where father/husband/doctor made $500,000/yr. and had $5,000,000 coverage in force.  He wanted $5,000,000 coverage on the non-working wife/mother.  If he lost her, his intention was to quit work and stay home with the kids.  The wife had $1,800,000 in force which she would replace.

Before wasting time on medical underwriting – it is good to, first, make sure a carrier will give you the amount of coverage sought, especially regarding coverage for family members other than the bread-winner.

All carriers require at least the same amount on the working spouse, but consider the range of results for financial offers in this case:
  • Company A – $1,000,000 (i.e. they felt the mother was already over-insured)
  • Company B – $1,500,000 (low reinsurance limit, didn’t want to explain any more to a re-insurer)
  • Company C – $2,500,000 (good large carrier, would give 100% of the amount on the working spouse, but only up to $2,500,000)
  • Company D – $5,000,000 (no questions asked)
  • Company E – $5,000,000 (no questions asked)

Finding up front how much coverage is allowed before taking apps can save time and embarrassment – just one more example of why the spreadsheet doesn’t tell the whole story!

Call us and we’ll do the leg work for you and discuss other reasons one carrier may be a better fit than others.

Captain Bligh was eventually acquitted with honor in the formal inquiry regarding the Bounty mutiny.  He went on to sixteen more assignments (mostly commands) eventually reaching the rank of Rear Admiral.