Can I open a life insurance policy on my grandma who is in her late 60's?

Question

My grandmother in-law is in her late 60's and she doesn't have life insurance. She has six children who are incapable of paying for her funeral costs and handling her money. My husband and I think that we would be the most responsible people in the family to handle her funeral arrangements etc.

What would be the best life policy to get? ( If I could even obtain one) and how much would it cost approximately?

She also has two young great grandchildren in which she is their legal guardian. I would want them to have some sort of stability in the event that the grandma dies.

She has no known major health problems, doesn't smoke...is overweight. She is 5'0 and about 200lbs.

Thanks for your help!

Answer 1

While your husband could justify insurable interest, I would not ethically recommend an amount of insurance unless I, as a licensed agent, actually interviewed your grandmother in law and observed her overall health for myself. In fact, in Florida we are required by law to certify that we have done just that, especially if it is someone over 65, and anyone who tells you differently may well be an unethical agent.

My suggestion is that if you are only looking at what we refer to as "final expenses", in Florida, the average funeral is $6,000 to $8,000 except in South Florida where they are likely closer to $8k-$10K. There are also other expenses that you have to take into account that have nothing to do with the funeral such as taking care of medication bills, hospital/doctor bills, preparing the house for the market if it is being sold by the estate, etc etc. My suggestion is that you ask around among your family and friends and find an agent that they believe to be reputable, and then maybe look at a SMALL whole life policy of no more than $10,000. You could supplement this with a small savings account or CD for a remaining amount of, say, $5000. The reason I don't suggest term because she is approaching the age where term insurance is not an option, and unlike whole life policies, term policies expire and have to be renewed. You don't want to be in the position of having to purchase term insurance for a person of 80 or 85 years of age, if it is even available. This is the safer way to go, believe me. This premium will not change.

Like I said, I don't sell on the internet, but if I can help you answer any general questions, please feel free to email me @ [e-mail]

Answer 2

As long as you have an insurable interest (blood related), you can get a policy for her with her approval.

To make sure the great grandchildren are taken care of, you would probably have to take them in yourselves.

To cover burial and a little more in case of medical expenses (~25k policy) should be less than $100/mo in a term policy.  Find one that is guaranteed renewable if she lives longer than another 10 years (god willing) it will stay in force regardless of health conditions (premiums must still be paid).

If you want to go above and beyond like the first poster, although granted that much may still be needed, a $250k from my company is less than $500/mo.  I know we are not the cheapest so it should be that or lower.

Answer 3

In regards to the past answer I would point out that your husband is the Grandson and therefore a family member. most states recognize family as having an insurable interest and therefore you get apolicy without jumping through the hoops suggested that will just boost the salesmans commission. Find a good company and ask the agent how to get a policy. I would guess you can get one, but it will be fairly expensive.

Answer 4

No company is going to incite criminal activity.

That is, no company will write a policy on Lady A, with Lady B owning the policy with no interest in keeping her alive.  Lady B could kill Lady A and collect the cash.

Not good for the company.

Or for Lady A.

In other words, you will need to show 'insurable interest' in the grandmother.  Absent such interest, you cannot own the policy.

However, you could gift her the money, up to $11,000 a year, so she could buy the policy on herself.  That is legal.

Later, depending upon the operation of state law, she could sell you her interest in the policy.  Or she could assign some of the value of her policy to you.  

Note Bene:  State law will prevail.

Answer 5

My father is 68 and has diabetes, hi-blood pressure and neuropothy we got 200,000.00 worth of coverage for 787.00 per month.  I think you should contact my agent.  He is at http://www.lvhelathins.com  He has been great to deal with.

Answer 6

Yes, if you have her permission, but if between the six kids your family can't afford the funeral, likely you're not going to be able to afford the insurance premiums for a policy.

I'd advise, just start saving the money.

Answer 7

aarp.com will insure her...you should be named guardian...last will on order by an atty of your state...let the other kids know what you are doing! my advice!