My husband wants to put life insurance on his mother but his niece already did it is there any way that he can do it anyways.
2007-03-09 01:35:38 · 7 answers · asked by colodge_25 3 in Business & Finance ➔ Insurance
Yes, but he needs her permission to do it. His mother, I mean, not his niece.
2007-03-09 01:54:34 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
Insurance companies require what is called an insurable interest. As long as you have a logical reason for insuring you mother then typically the carrier will let you. However, depending on the amount of coverage she already has most companies limit the amount of total insurance a person can own based on financial need. If you only talking about insuring her for a small amount, under $25,000, typically their is no issue of needing financial information to justify the coverage. If you are applying for coverage above $100,000 the insurance company may require that you show proof of financial need.
You will need to have her permission and she will need to complete and sign the application and submit to any of the underwriting requirements of the carrier. You can be the owner, payer and beneficiary of the policy but only with her consent.
Insurance companies limit the aggregate (total) amount of insurance on a insured to prevent a beneficiary from profiting from a persons death. For example, if a person has a net worth of $100,000 the insurance company may allow the person to have.
2007-03-11 14:24:28 · answer #2 · answered by Barry T 2 · 1⤊ 0⤋
Yes, but you have to have permission to do so. Also, everyone has what is called "insurance capacity" meaning this.. The amount of in force Life Insurance on any one individual is generally tied to the net worth of that individual. If your mother had a net worth of $5mm and your niece has a policy for $2.5mm you could (with permission) obtain roughly an additional $2.5mm on her. In my experience "insurance capacity" varies from one insurance carrier to another. Some companies "insurance capacity" can be a little higher than the persons net worth. Some can be a little lower.
2007-03-09 10:53:54 · answer #3 · answered by lifestar 2 · 0⤊ 0⤋
Yes. He can take a funeral policy out on her with or without her permission. When she dies, he will be the responsible party not the niece. I'm assuming there is no spouse.
If the mother has already done her own funeral preplan, he should not do a second one.
2007-03-12 08:53:17 · answer #4 · answered by J. B 3 · 0⤊ 0⤋
Yes, there is no limit to the number of life insurance policies you can get on a person. You may want to try a website that compares multiple companies at once to get you the best price. I am paying less than ½ after I did.
Go to: http://www.insureme.com/landing.aspx?Refby=616164&Type=life
Take care,
Casey
2007-03-12 14:35:02 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes. As long as she signs, he can purchase and pay for what he feels would be necessary to cover any loss he might sustain at her death, such as his part of any funeral expenses.
There is no requirement as to how much insurance can be purchased on one life unless it gets excessive and the insurance company suspects it might be for the wrong reason.
2007-03-09 10:24:46 · answer #6 · answered by deep5223 4 · 0⤊ 0⤋
Yes; but she has to approve the application.
2007-03-09 09:40:14 · answer #7 · answered by Rob D 5 · 1⤊ 1⤋