Can I take out life insurance on my mom?
Can I take out life insurance on my mom?
So my father was an alcoholic and my mother is an addict, my father recently passed away and it was very hard to come up with all the money for his funeral as i am a young mother with financial responsibilities of my own. I am worried my mother is going to die due to all the drug use over the years, is there a burial or life insurance i can get on her to help with expenses?
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6 Responses
2.1.2010
As long as you have "insurable interest" (you will suffer a financial loss of some kind due to their death) in someone you can take out a policy on them. Becuase it's your mom and you would likely be the one to pay the funeral/final expenses, you have insurable interest.You can buy small policies for burial, etc. Based on your information (mother is addicted to some drug) it is unlikey she would get approved with a standard policy, so you would need to go with some kind of gauranteed issue policy where they don't do any underwritting. This kind of policy would be very expensive, so make sure you shop around a little.Your best bet would be to contact a local licensed insurance broker who has access to multiple companies and types of life insurance products. They will be able to find a company that will approve your mother and find one at the best rate for you. Source(s): Financial Advisor.
2.1.2010
If you buy a burial plan, you don't need her participation. But if she dies before you have paid it out, you have to come up with the cost in full at time of her death and the casket cost, the service and the plot are not included, and that is difficult to do at the time of death. If you take out a life insurance policy on her, she has to sign it, even if you make the monthly premiums. She must be under age 85 to get one.
2.1.2010
Yep, you can get a guaranteed issue policy, to cover those expenses. You need her permission and cooperation, though. AND, she has to live at least two years – meaning, you have to pay in at least two years – before she can die and have a death benefit paid out.Mutual of Omaha and Globe Life are two companies that write this type of policy.
2.1.2010
if she is an addict, you probably will NOT be able to get her insured anywhere – she will probably have to pass a physical, so you would need her cooperation in order to get the insurance
2.1.2010
Not without her concurrence and submittal to an insurance physical exam. Doesn't sound like she'll qualify from what you say. A better alternative is to purchase a prepaid funeral plan.
2.1.2010
Don't waste your money on life insurance in this case.Your money would be better spent on some pre-paid funeral expenses. Sorry, for your loss, or really losses.