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Old 08-07-2011, 09:26 PM
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Default life insurance question

I have a family member who is almost 90 years of age. I have a feeling I will be assissting in the final finaces department, (paying off a vehicle, possible credit card minor debt) and some home repairs to sell their house.

Can I take out a life insurrance policy on this family member? Do i need their permission?

If possible, I would like to get about a 50k policy, that should also help to cover the funeral and other intering expenses. I don't know much about life insurance, I keep my premiums paid so wife will be set if I/ when I kick off first.


Thanks for any info anyone may have to offer.
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Old 08-07-2011, 09:38 PM
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Sure! The premium is $51,000.00
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Old 08-07-2011, 10:13 PM
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I'm guessing it wont be cheap. Hoping it isnt quite that bad!
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Old 08-08-2011, 09:54 AM
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Originally Posted by MidwestRail View Post
I'm guessing it wont be cheap. Hoping it isnt quite that bad!
I doubt anyone would sell a life insurance policy covering a 90 year old. Ninety is beyond the life expectancy of any male or female in the U.S. Statistics are the basis of insurance rates. May just need to buy some lotto tickets and cross your fingers.
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Old 08-08-2011, 09:56 AM
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Lightbulb Google-Fu at your service

It would seem as though you can. Here's what I found:

Ask an Attorney - FreeAdvice Answers


Q: Can a person take a life insurance policy out on someone without their permission or knowledge?

Question Details:

The individual that took out the policy, recently asked for my SSN to update her life insurance policy with me as her beneficiary (relative). I provided my SSN but later had second thoughts since the parties have an up and down relationship. Recent documents were found; a policy had been taken out on me in 1994 without my permission, knowledge, or signature. Of course she made herself beneficiary, signed my name, and filled out the policy entirely. I was incarcerated for 10-years. I haven't signed anything. What are my rights or do I need an attorney?

Attorney Answer given by M.T.G., Member, New York Bar
Answered on July 3, 2011.

In order to take out a life insurance policy on the life of another person one needs to have what is known under the law as an "insurable interest" in that person's life. Spouses have insurable interests in each other 's lives; business partners in each others lives; parents in the lives of their children. Relatives who support other relatives can also have insurable interests. Here you have not given a lot of information as to your relationship but I am going to assume that she does not have an insurable interest in your life. If that is the case then the policy is void. I am assuming that she has been paying the premiums. What here do you want to do? You can contact the insurance company and advise that you have become aware of the policy and that you did not execute any documents and that you believe that the policy is a fraud. An investigation will begin no doubt in to the matter. You can consult with an attorney if you wish to take legal action against her Good luck.

Q: Can I buy a life insurance policy on someone else's life? What is an "insurable interest"?

A: To prevent people from taking out a life insurance policy on the life of a stranger and then killing them to get the life insurance proceeds, or having life insurance become a gambling device -- "I'll pay you $500 now and if O.J. Simpson dies in the next two years you'll pay me $25,000" -- persons purchasing a policy must have an "insurable interest" in the life of the person being insured.
In dealing with life insurance, an "insurable interest" generally means a substantial interest engendered by love and affection in the case of persons related by blood, and a lawful and substantial economic interest in the continued life of the insured in other cases. People are always considered to have an insurable interest in their own lives, and generally also have an insurable interest in the lives of their spouses and dependents. Business partners may have an insurable interest in each other, and a corporation may have an insurable interest in its employees' lives, particularly key employees.

Also see: General Life Insurance Questions
Good Luck & keep us posted.
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Old 08-08-2011, 10:06 AM
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It would seem as though you can.
Now for the bigger question. What outfit would sell life insurance on a 90 year old?
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Old 08-08-2011, 10:47 AM
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Actuarial tables also rate life expectancy after you reach a certain age. So, a ninety year old may have a life expectancy of six more years, whereas a 50 year old may have a life expectancy of only 24 more years. At any rate, the policy premium would be close to the payout. That's the way insurance works.

On the "insurable interests", a little googling would probably uncover the scummy practice of dead peasant insurance. Oh, look, yes, the Thoroughbred of Transportation did it:

Dead Peasants Insurance FAQ : Questions & Answers about Corporate Owned Life Insurance (COLI), Janitor Insurance
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Old 08-08-2011, 08:35 PM
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oh well. Looks like I will be biting the bullet on this one, I hope some of the others pitch in and help.
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Old 08-09-2011, 06:44 PM
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I am posting Steve Gordon's reply to this thread, as he is in Berlin and this ip address is banned in that country:

Dear MidwestRail:

I am assuming you have children as well and, therefore, I welcome to the
sandwich generation, i.e., sandwiched between children and aging
parents. It is odd but the American Culture is one that created this
classification. In almost all other cultures it is understood that we,
as children, will take care of our parents financially. Perhaps it is
our lifestyle which is usually greater in expenditures than other
cultures that makes it harder to financially handle this additional
economic burden. Anyway on to the question....

In most all states, before you can obtain a life insurance policy on the
life of another, you must have what is called an "insurable interest".
You qualify. Your request for a $50,000.00 policy is a reasonable amount
(1) since the average price of funerals in the USA is +/- $8,000.00,
according to the National Funeral Directors Association (in 2006) and
this is excluding burial expenses and (2) assuming your father lives at
least a couple of years more, you and your family will easily incur
additional expenses covering the remaining amount.

Also, there is an inherent minimal amount that a life insurer wants to
write a policy for to cover administrative costs for writing and issuing
it so the death payment amount has to be at least high enough to give
them the incentive to do it in the first place.

Finally, as indicated, it is going to be very expensive assuming he is
insurable.

Take care and I am glad you are here on this planet and this forum.

Steve
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Old 08-09-2011, 07:46 PM
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thanks batman for posting that. Definately might be cheaper to just fork out when the time comes instead of fighting with them and then paying the monster monthly premiums.
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