MR. WATSON: Where does your grandpa live?

STUDENT: In the ground.

MR. WATSON: Well, there's a bad example!

(Laughter.)

MR. WATSON: So I'm sorry about your Grandpa. How about your Grandma?

STUDENT: Deceased.

MR. WATSON: Do you know any old people who are still alive?

(Laughter.)

STUDENT: Yeah.

MR. WATSON: Where do they live?

STUDENT: Uncle in Alabama.

MR. WATSON: How old is he?

STUDENT: 78.

MR. WATSON: He's probably old enough to have one of these things. Someone up in the hills, Grandma or Grandpa, or an Uncle in Alabama buy just enough insurance to bury them. Does that make sense? Industrial policies characterized by a small death benefit, less than $3,000 usually, collected by the agents on a weekly basis.

Then there are ordinary policies. How are ordinary policies paid?

STUDENT: Any other way.

MR. WATSON: Who said that? Say it again.

STUDENT: Any other way.

MR. WATSON: Industrial is paid how?

STUDENTS: Weekly.

MR. WATSON: Ordinary is paid how?

STUDENTS: Any other way: annually, semi-annually, quarterly.

MR. WATSON: Industrial is paid how?

STUDENTS: Weekly.

MR. WATSON: Ordinary is paid how?

STUDENTS: Any other way.

MR.WATSON: Guys, I'm a movie star. What kind of policy do I have? Ordinary. You think a movie star is going to have an agent come by every Thursday?

STUDENT: Might.

MR. WATSON: Doubt it!

MR. WATSON: Anything other than weekly is what?

STUDENTS: Ordinary.

MR. WATSON: What kind of policy will you be buying?

STUDENTS: Ordinary.

MR. WATSON: Because why?

STUDENT: I'm not letting you come to my house.

(Laughter.)

MR. WATSON: I don't blame you. You understand?

STUDENTS: Yes.