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  1. #1
    Grandma broke her coccyx! Uncle Rico's Avatar
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    Life Insurance Policy
    Don't take this the wrong way, but can you take out a life insurance policy on someone other than yourself? My question has the best intentions.

  2. #2
    notary sojac Herb ԿԬ's Avatar
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    as far as I know, you can. some employers even do it.

  3. #3
    Grandma broke her coccyx! Uncle Rico's Avatar
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    I am considering taking a policy out on my parents. In case something happens to one of them, I will give the other the proceeds. Right now, I know they each have very little as far as life insurance goes and they aren't the best planners.

    I would, ofcourse, tell them.

  4. #4
    Beachy Bill's Avatar
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    Yes, you can be the owner of an insurance policy on the life of someone else. However, you must have their permission (i.e., signature on the policy) and a legitimate reason to do so. This is common in the business world where partners or corporate officers are insured by one another (partners) or by the corporation (officers).

    Disclaimer: IANAL
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  5. #5
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    Life Insurance Policy?...
    Quote Originally Posted by SeymourButts
    Don't take this the wrong way, but can you take out a life insurance policy on someone other than yourself? My question has the best intentions.
    Seymour

    Yes. This occurs all the time. Many people take out policies on their children and or spouses among other things.

    This is often the motive for many murders and the source of many all time best selling books and movies too. If you ever watch court tv or A&E you'll see what I mean. On the other hand if you did I'm not sure if the thread would exist.

    Now I'm not making any stupid suggestions or juvinile remarks here Seymour, I'm simply pointing out to you that yes, millions of these policies are written every year.

    Some you can even borrow against. Term Life I think.

    I sincerely hope this helps you Seymour in your journey.

    Steve

  6. #6
    ABW Ambassador newestuser's Avatar
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    If they're old, it could be pretty expensive.

  7. #7
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    Quote Originally Posted by SteveWilliams
    Some you can even borrow against. Term Life I think.
    Term insurance doesn't have a cash value, so there isn't anything to borrow against. You're perhaps thinking of whole or other policy types?
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  8. #8
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    Life Insurance...
    Quote Originally Posted by DoctorMike
    Term insurance doesn't have a cash value, so there isn't anything to borrow against. You're perhaps thinking of whole or other policy types?

    Mike

    Dunno. Not sure. In any case yeah, dude is right. If they old it can cost you like 100 USD/ mo and I'm not sure that you'd pay that little for two people.

    I'm not sure if you planned on it being that much or not. Also for the older they get the more it costs.

    Know of anything that pays 16% on your money ?

    Steve

  9. #9
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Seymour,

    You cannot just take out an insurance policy on someone else's life. The person whose life is being insured has to be the person applying, and depending on the type of insurance and policy amount, has to qualify medically. This can be as simple as a few basic questions, as involved as a complete medical exam, or anywhere in between. An employer, spouse, son, etc. can be the person or entitly actually paying the premiums, and any person or entity (charity, spouse, daughter, trust, etc.) can be listed as beneficiary.

    The type of insurance is the most important factor. As stated, whole life is the most expense, but it does build cash value and can eventaully be cashed in prior to death, if so desired, and generally requires a full medical exam.

    Term insurance, much less expensive, but that builds no cash value, is much easier to qualify, but depends on the issuing entity. If you apply to a major insurance company, you may find a good rate, but will also have more extensive information to provide to qualifty, and possibly even an exam, depending on the policy amount and the company. There are a lot of "cheepie" companies that advertise a lot, expecially to seniors, that emphasize their easy qualifying, but if you look closely at their rates, the easier to qualify, the highter the premium schedule. Specfically, stay away from companies like Colonial Penn that blitzes late-night TV - their rates are the highest.

    There are also cooperative organizations that provide low-rate insurance for their members, and if your parents are over 50, then the best way to go is through AARP. They have the best rates available for senior insurance, and virtually no qualifying.

    Unions and other types of cooperative organizations have similar programs.

    As to AARP, if would cost less than $20/year for your parents to join, and you can fill out their easy life insurance forms with them in 5 minutes, and they set it up with monthly electronic payments from your checking account.
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  10. #10
    Affiliate Manager PetsWarehouse.com's Avatar
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    How about this deal, if you have an insurable interest (assets) of at least $3 million, investors will pay all your premiums for two years and you select the beneficiary.

    At the end of two years the policy is sold back to the investors and they become the beneficiary, you get 10% of the face value in cash.

    So in two years you can receive $300,000 or more depending what the value is set to.

    Anyone know about this?
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