Life Insurance for Parents

[deiserebel]

My parents are in their late 50's. My father has life insurance with his job that he thought was applicable to both my parents & regardless of their age when they die. However, he has recently found out that the insurance ceases when they are 70 if they are still alive.
Is it possible for me & my sister to insure them, and should I go to a broker or just scout the internet for deals. We do have an insurable interest as they are our parents but wondering if that continues to be the case once over age 18. Any advice appreciated.
DR

 

[LDFerguson]

It would be unusual for adult children to have an insurable interest in their parents. An insurance company will want to know why you want to insure your parents' lives, i.e. in what way will you be financially out of pocket on the death of your parents? Funeral expenses would usually be covered by savings or other assets of the deceased person.

 

[PM1234]

If you are concerned how one of your parents will cope financially after the death of another, one option would be to ask your parents to take out a life policy and you and your siblings could pay the premiums indirectly by transferring the cost of the premiums into your parents bank account. Bear in mind that the premiums will be relatively high depending on the age and health of your parents.

You really will have to look into this further and discuss with your siblings as this could cause quite a lot of family trouble down the line if those paying the premiums expect the policy returns to go in their favour.

 

[Jimbobp]

Would be worth while to find out what type of policy your parents had through your Dads occupation. Whether it was pension related or if it was a term policy. If it was a term policy it may have a convertible option built in that will allow them to take out another policy without having to provide any medical evidence. The premium may still be relatively high, but if you can avoid medical underwriting it can save a lot of hassle and a possible decline.

 

[Lorrie]

My mother had a life insurance policy for my dad. She died before him. They had been paying into this for many years. To encash it - a lot of money would have been lost. Therefore my dad wanted to keep paying it. He couldnt really afford it so my two siblings and I pay the premiums each month equally. It is a little strange but my dad insisted on it.

 

[RS2K]

Would be worth while to find out what type of policy your parents had through your Dads occupation. Whether it was pension related or if it was a term policy. If it was a term policy it may have a convertible option built in that will allow them to take out another policy without having to provide any medical evidence. The premium may still be relatively high, but if you can avoid medical underwriting it can save a lot of hassle and a possible decline.

Looks like a D.I.S. (death in service benefit) to me. Part of the pension scheme.

Conversion whilst in service is not possible.