Distressed elderly couple find out their life insurance is worthless
Imagine pouring tens of thousands of dollars of your hard-earned savings into a life insurance policy only to be told that, unless you die in the next six weeks, your family will receive nothing.
It sounds utterly ludicrous, but that’s the reality for Aussie couple George and Irene Nesbitt, who have been told by their insurer that the policy they’ve paid more than $31,000 for over almost 25 years will become essentially worthless when they turn 90 next year.
The devastated couple, who admitted they have just a few hundred dollars to their name, told A Current Affair that they were relying on the insurance payout to fund their funerals.
“I think it’s disgusting, I never would have paid into an insurance like that, I would have cut it off,” Irene said. “For our children’s sake I wanted to cover our funerals so they wouldn’t have to lay out any money.”
Earning a fortnightly pension of just $1,334, the life insurance policy took thousands out of their already meagre bank account, so to learn that money would be going to nothing is an even bigger kick in the teeth.
The couple had no idea about the cruel technicality that their life cover (the payout of which was promised to be $8,000 each) would cease upon turning 90 – it was only when sorting through documents last month that Irene discovered the rule. “I didn't look at that clause... I didn’t realise that meant you didn't get any money,” she said.
George and Irene’s daughter Diane told the TV program she was heartbroken to see her parents in strife. “They’re 89 – both of them – and they’ve worked hard all their life... all they’ve cared about is that we don't have to worry about their funeral costs."
The Commonwealth Bank, who own the Nesbitts’ insurance provider Colonial, issued a statement to the Daily Mail confirming they were unable to extend the couple’s cover. “We are in touch with the Nesbitts to explore if there is any kind of assistance that we can offer,” they said.
Do you think it’s fair for life insurance cover to stop at 90? Share your thoughts with us in the comments below.