About time insurance.......?
My nephew told me that you can take out a life insurance policy on anyone at anytime.....is this true? For example,would it be undemocratic and/or immoral if my nephew took out a life insurance policy on one of his grandparents,who he know was getting old and didnt hold much longer to live?Could he actually do this and cash within on it?
Answers:
Two things would hold to be done in order for him to that 1) he would enjoy to prove that he has an insurable interest meaning that he have financial need for the insurance on his grandparents, ie he is the only subsequent of kin and would have responsibility for their care after they hold passed on. (2) He would have to have their consent to some form of physical... and most nation over the age of 55 have to have blood and urine sample taken to get any amount of insurance.
Not to mention the legality AND moralality you mentioned. Tell your nephew to stop taking CSI so litterally, it is merely a TV show, and not EVERYTHING in it is true. Source(s): Life agent/Financial advisor 2+yrs
Financial Industry 7+yrs
BA Economics
2/3 completed LUTCF program
www.alaldrete.com
One cannot whip out an insurance policy without their knowledge. If your nephew required to pay for a policy that his grandmother wanted to filch out, then that is ok. Signatures must be put on adjectives applications as well. If your nephew meets beside an agent, and signs his grandmothers name to an application, then your nephew have committed forgery, attempted insurance fraud, and the agent was his accomplice. Do not fret. Unless Grandma know, he ain't taking out a thing. Good luck. Source(s): Insurance agent - Texas, CLTC
Insurance companies won't question insurable interest too heavily on a grandparent or grandchild relationship, although your nephew should be ready to explain why he's doing it. As mentioned, his grandparents will entail to consent to get tested and sign a bunch of papers.
Contrary to popular opinion, the rate of return on vivacity insurance policies actually looks better the older the insured is. Sure it's more expensive, but you reward for a shorter period of time. That's one of the reasons why premium financing (where you thieve out a loan to pay the policy and pay it pay for at the insured's death) is only talked roughly speaking with older folks.
Immoral is a unbroken other question altogether.
sounds morbid
not exactly Source(s): http://www.insurance-assurance.com/get-f…
I significantly doubt it, now adays the person who is be insured need to take a physical, which not just consist a questionnaire but blood work and their medical history also determines if the person can be insured.
However, I have hear of in some cases where individuals embezzle out a policy that has a high premium. Most probable they would have to sign the policy even if you are paying for it does not mean you will be the beneficiary.
One of the basic concepts within life insurance is the idea of insurable interest. Insurable interest technique that a person must have some humane of economical interest in the life of another to be capable of buy life insurance.
For example, a father of a 5 year old will hold insurable interest on the life of his son, because should the son pass away, the insurance will relieve to aliviate the economical burden generated by the last expenses (funeral services, etc). A wife will enjoy insurable interest in her husband because should he pass away, her lifestyle will be compromised by the disapereance of the income generate by the husband.
For your nephew to buy insurance on his grandfather he will have to prove that he has some character of economical interest on his grandfather's life. Source(s): Working on life insurance for 3 years
For the most part, yes, it's true, HOWEVER, you involve their permission and cooperation.
Also, just because he can filch a policy out, doesn't mean it's going to be cheap!!
But if they signed off on the application, give the blood/urine/saliva samples, released their medical information to the company, AND he was liable to pay the premiums (depending on their age, it could be MORE than the payout!!) he can surely take out the policy on them.
The factor you're departure out here is, insurance companies base premiums on the odds of dying. They HAVE to, to stay contained by business. So if they've one foot in the grave, he's NOT going to make any money out of the buy and sell. Source(s): agent, 21+ years
That's not entirely correct.
there are limits depending on the state you live within and you have to prove insurable interest like
if the individual is a business partner, a husband or wife, etc.
in California you may insure your spouse up to $50,000 without him or her knowing it. Source(s): self
Related Questions:
Answers:
Two things would hold to be done in order for him to that 1) he would enjoy to prove that he has an insurable interest meaning that he have financial need for the insurance on his grandparents, ie he is the only subsequent of kin and would have responsibility for their care after they hold passed on. (2) He would have to have their consent to some form of physical... and most nation over the age of 55 have to have blood and urine sample taken to get any amount of insurance.
Not to mention the legality AND moralality you mentioned. Tell your nephew to stop taking CSI so litterally, it is merely a TV show, and not EVERYTHING in it is true. Source(s): Life agent/Financial advisor 2+yrs
Financial Industry 7+yrs
BA Economics
2/3 completed LUTCF program
www.alaldrete.com
One cannot whip out an insurance policy without their knowledge. If your nephew required to pay for a policy that his grandmother wanted to filch out, then that is ok. Signatures must be put on adjectives applications as well. If your nephew meets beside an agent, and signs his grandmothers name to an application, then your nephew have committed forgery, attempted insurance fraud, and the agent was his accomplice. Do not fret. Unless Grandma know, he ain't taking out a thing. Good luck. Source(s): Insurance agent - Texas, CLTC
Insurance companies won't question insurable interest too heavily on a grandparent or grandchild relationship, although your nephew should be ready to explain why he's doing it. As mentioned, his grandparents will entail to consent to get tested and sign a bunch of papers.
Contrary to popular opinion, the rate of return on vivacity insurance policies actually looks better the older the insured is. Sure it's more expensive, but you reward for a shorter period of time. That's one of the reasons why premium financing (where you thieve out a loan to pay the policy and pay it pay for at the insured's death) is only talked roughly speaking with older folks.
Immoral is a unbroken other question altogether.
sounds morbid
not exactly Source(s): http://www.insurance-assurance.com/get-f…
I significantly doubt it, now adays the person who is be insured need to take a physical, which not just consist a questionnaire but blood work and their medical history also determines if the person can be insured.
However, I have hear of in some cases where individuals embezzle out a policy that has a high premium. Most probable they would have to sign the policy even if you are paying for it does not mean you will be the beneficiary.
One of the basic concepts within life insurance is the idea of insurable interest. Insurable interest technique that a person must have some humane of economical interest in the life of another to be capable of buy life insurance.
For example, a father of a 5 year old will hold insurable interest on the life of his son, because should the son pass away, the insurance will relieve to aliviate the economical burden generated by the last expenses (funeral services, etc). A wife will enjoy insurable interest in her husband because should he pass away, her lifestyle will be compromised by the disapereance of the income generate by the husband.
For your nephew to buy insurance on his grandfather he will have to prove that he has some character of economical interest on his grandfather's life. Source(s): Working on life insurance for 3 years
For the most part, yes, it's true, HOWEVER, you involve their permission and cooperation.
Also, just because he can filch a policy out, doesn't mean it's going to be cheap!!
But if they signed off on the application, give the blood/urine/saliva samples, released their medical information to the company, AND he was liable to pay the premiums (depending on their age, it could be MORE than the payout!!) he can surely take out the policy on them.
The factor you're departure out here is, insurance companies base premiums on the odds of dying. They HAVE to, to stay contained by business. So if they've one foot in the grave, he's NOT going to make any money out of the buy and sell. Source(s): agent, 21+ years
That's not entirely correct.
there are limits depending on the state you live within and you have to prove insurable interest like
if the individual is a business partner, a husband or wife, etc.
in California you may insure your spouse up to $50,000 without him or her knowing it. Source(s): self
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