The Pokeys must be desperate...

[Okla-homey]

Heard on the radio this am that apparently, the Pokeys are hitting up old fans to name oSwho sports as beneficiary of their life insurance policies. Evidently, the Pokemen will even take over payment of the premiums.:eek:

Is T. Boone broke or something?

[picasso]

Is T. Boone a prune faced narcissistic power hungry windbag who couldn't get any unless he was enormously wealthy or something?

that'd be my guess HomesEy.

[royalfan5]

This isn't a new practice in the world of college fundraising. My undergraduate Alma mater has been doing it for years.

[OUDoc]

When those alums die, won't the stadium be even emptier?

[picasso]

I have an old VA policy worth about $8.5K. I've bequethed it to Vinnie the Hammer...he's gonna grease the horsepig
what if Vinnie dies? will Vinie Jr. have enough chest hair by then?

[Okla-homey]

This isn't a new practice in the world of college fundraising. My undergraduate Alma mater has been doing it for years.

Mine too, but the proceeds go to fund the academic infrastructure, academic schollys and endow perfessors and such. Not to "buy a national championship."

[royalfan5]

Mine too, but the proceeds go to fund the academic infrastructure, academic schollys and endow perfessors and such. Not to "buy a national championship."
It's only a logical progression though. As long as college athletics is money driven, schools will have to expand their fundraising efforts. Is life insurance somehow inherently worse than corporate sponsorships or donations from living persons.

[Okla-homey]

It's only a logical progression though. As long as college athletics is money driven, schools will have to expand their fundraising efforts. Is life insurance somehow inherently worse than corporate sponsorships or donations from living persons.

No, but it smacks of, "please give us your life insurance so your rotting carcass can fertilize the grass at T. Boone Stadium."

Frankly, I believe there should be a definable barrier between private academic endowment and athletics, with no co-mingling of the kitty. If some corporation wants to donate bucks to college sports then that's fine (I guess) but I think it kinda violates the spirit of the law that such charitable donations should be for the public good.

I've even heard Pokey's I know argue that winning is essential in order to be respected as a first-rate academic institution, although I fail to see any logic in the argument -- especially since no one really cares where their vet. went to vet. school and Harvard hasn't been in the hunt for the BCS in recent memory.

[royalfan5]

No, but it smacks of, "please give us your life insurance so your rotting carcass can fertilize the grass at T. Boone Stadium."

Frankly, I believe there should be a definable barrier between private academic endowment and sports with no co-mingling of the kitty. If some corporation wants to donate bucks to college sports then that's fine (I guess) but I think it kinda violates the spirit of the law that such charitable donations should be for the public good.
The way I understand it is that Boone State is buying the insurance on the boosters, and waiting for them to die. The Boosters really aren't giving anything except their consent to be involved. Don't most schools seperate their athletic and academic endowments? I know NU does.

And taking away the tax deductible aspect would radically change college sports.

[Okla-homey]

The way I understand it is that Boone State is buying the insurance on the boosters, and waiting for them to die. The Boosters really aren't giving anything except their consent to be involved.

That's even shadier...IMHO.

[royalfan5]

That's even shadier...IMHO.
I'll disagree with you on that. The OSU athletic department, like all athletic departments relies heavily on certain well heeled boosters, if the booster dies they lose that source of revenue. OSU is merely taking steps to manage that risk through insurance. I don't see it as any different than farmers buying crop insurance.

[OUDoc]

I don't see it as any different than farmers buying crop insurance.
That's the farmer's crops. OSU doesn't own the boosters. I don't think anyone but immediate family should ever have the ability to benefit from your death! :D The same goes for my house. I don't think OU should take out a policy on my house in the event a tornado or fire destroys it, do you? The way I see it, insurance should be to allow people to have the funds to keep living or replace property that was destroyed/damaged. Not to generate funds for an unrelated entity.
It'll end up as messed up as health insurance if you continue down that road.

[royalfan5]

That's the farmer's crops. OSU doesn't own the boosters. I don't think anyone but immediate family should ever have the ability to benefit from your death! :D The same goes for my house. I don't think OU should take out a policy on my house in the event a tornado or fire destroys it, do you? The way I see it, insurance should be to allow people to have the funds to keep living or replace property that was destroyed/damaged. Not to generate funds for an unrelated entity.
It'll end up as messed up as health insurance if you continue down that road.
Some businesses will take out life insurance policies on key employees. It's a risk management tool. It's being done with the booster's consent. I think people should be able to make anyone a beneficiary of a life insurance policy they chose. There is also a difference between house/car insurance and life insurance. But if OU wanted to take out an insurance policy on your house, I wouldn't have real problem with it. There would be no reason to, because the risk/reward isn't there like it is for life insurance.

[OUDoc]

Some businesses will take out life insurance policies on key employees. It's a risk management tool. It's being done with the booster's consent. I think people should be able to make anyone a beneficiary of a life insurance policy they chose. There is also a difference between house/car insurance and life insurance. But if OU wanted to take out an insurance policy on your house, I wouldn't have real problem with it. There would be no reason to, because the risk/reward isn't there like it is for life insurance.
True, it still doesn't seem right to me.


I think people should be able to make anyone a beneficiary of a life insurance policy they chose.
Here's where I have the problem. I should be able to do whatever I want, but someone else (non-family) shouldn't be able to buy one on me and make themselves beneficiary. I know it's legal, just seems wrong.

[FaninAma]

I don't doubt that it's a ligitimate practice. My question is whether or not this is the most efficient use of the funds being used to pay the premiums on the insurance policies.

Wouldn't the money be better spent by investing it directly into a well managed mutual fund? The only way the insurance scheme would seem to be more adventageous to osu is if a lot of the alumni that are being covered croaked early.

Which would mean that not only does T. Boone look like the crypt keeper.......he's acting like him, too.

[royalfan5]

I don't doubt that it's a ligitimate practice. My question is whether or not this is the most efficient use of the funds being used to pay the premiums on the insurance policies.

Wouldn't the money be better spent by investing it directly into a well managed mutual fund? The only way the insurance scheme would seem to be more adventageous to osu is if a lot of the alumni that are being covered croaked early.

Which would mean that not only does T. Boone look like the crypt keeper.......he's acting like him, too.
I think they are only doing it on older boosters as of right now. As I understand it they are spending 20M in premiums for 250M coverage. If you expect them all to kick in the next 20 years you would come 116M ahead of getting a 10% return on your money in an investment at a 10% rate of growth for those years.

[sooner_born_1960]

I asked in other thread (football board), and I'll ask here. What insurance company would underwrite policies that are expected to pay out 12 times the premiums paid? There is something fishy going on here.

[Mixer!]

:les: LACK OF INSTITUTIONAL CONTROL OF THE ATHLETIC DEPARTMENT!

[FaninAma]

I think they are only doing it on older boosters as of right now. As I understand it they are spending 20M in premiums for 250M coverage. If you expect them all to kick in the next 20 years you would come 116M ahead of getting a 10% return on your money in an investment at a 10% rate of growth for those years.

Please let me know which insurance company is willing to take this big of a hit on an insurance policy so that if my life insurance is with that company I can change now before it goes broke.

My point is that the insurance company is not going to take a hit on this. So where's the difference coming from between the $20 million premium and the $250 million payout? I assume from investing the $20 million. So am I safe in assuming that in order for the insurance company to stay in business and make a profit that the expectation is that the investment will bring in more than the $250 million payout?

If so, then it seems that osu is allowing the insurance company act like a middleman and get a cut of the profits for taking a portion of the risk.

osu comes out ahead if all they have all or most of the alumni die sooner(no pun intended) rather than later. They lose if the alumni live long enough for the investment value to exceed the payout of the policy.

And if all of the covered donors are older(ie over 55) I would be shocked if the premium for a $250 million payout isn't much, much higher than $20 million.

Again, I've been led to believe that if you are wishing to maximize return on investment then whole or universal life insurance policies are not good investments.

[Oldnslo]

1. Yes, insurance is a "for profit" business. On average, insurance pays out 98%. About the same margin as Vegas slots. Seems to be working out for Vegas and most insurance companies.

2. You can take life insurance out on another individual with that person's consent. Nothing shady about it. It's not unusual for kids to take out policies on aged parents.

3. This kind of giving is nothing new... except perhaps in Stoolwater. Many of the charities I'm involved with urge "planned giving", as this practice is called. The real funny here isn't that this practice is going on, it's that it has just been discovered by the ags.

[Okla-homey]

It still seems shady to moi. It's one thing if a person wishes to remember his alma mater in his estate planning. I get that. Frankly, that's how a lot of buildings get paid for. It's quite another matter to insure aged fans and ask them to name yourself as the beneficiary. In short, it's the sort of thing my Aunt Margaret would have called "tacky."

[royalfan5]

It still seems shady to moi. It's one thing if a person wishes to remember his alma mater in his estate planning. I get that. Frankly, that's how a lot of buildings get paid for. It's quite another matter to insure aged fans and ask them to name yourself as the beneficiary. In short, it's the sort of thing my Aunt Margaret would have called "tacky."
You expect a school that wears that much orange not to be tacky?

[soonerscuba]

I prefer the method of educating your students and attracting scholars that make enough to endow the school through smarts, elbow grease, and a desire to support something. Call me old fashioned.

[sooner_born_1960]

1. Yes, insurance is a "for profit" business. On average, insurance pays out 98%. About the same margin as Vegas slots. Seems to be working out for Vegas and most insurance companies.

So, on average, pokey can expect to lose 2% on their investment. Smart move.

[TopDawg]

From the Department of Redundancy Department...


The Pokeys must be desperate...