How Insurance Works...

Tom's barn burned down and his wife, Matilda Jane, called her insurance agent to file a claim... Matilda Jane told the insurance company, "We had that barn insured for fifty thousand and I want my money, right quick!" The agent replied, "Just a minute, there, Matilda Jane. Insurance doesn't work quite like that. We will ascertain the value of what was insured and provide you with a new one of comparable worth." There was a long pause before Matilda Jane replied, "Then I'd like to cancel the policy on my husband... Right quick!"
Originally published November 14, 2002.