I want to get my 52 year old uncle life insurance. Can I do this without being a dependent?

Question

I just want to be able to pay for funeral costs if/when he dies. He doesn't care to get it for himself, and I think it is selfish for him to assume that the family will take care of the expenses. Funeral costs are high, and I don't want anyone to have to struggle to pay for it. So I am willing to insure him and pay for the montly payments. However, he doesn't live with me and he doesn't depend on me or vice versa. I also would like to insure him for long term care if he needs it. So can I take on the responsibility even though he does live with me?

Answer 1

If he doesn't care, just put him in a pine box or dump a bag of lime on him.  It'll be cheaper, and he'll be just as happy.

Debts are not usually inheritable, but he should talk to the attorney who did his will if he has any specific questions.

Yes, I'm serious.

Answer 2

Yes, you can certainly insure your uncle, as long as he agrees to everything and releases his medical history.  Beware though, at his age, there will more than likely be health exams and physical exams he will need to complete in order to determine insurability.

Answer 3

OK, you're not really clear whether your uncle is on board with this plan or not. If you have his agreement and permission, then you certainly can take out a life insurance policy on him and pay the premiums, assuming he's eligible.

Keep in mind that insurance for someone in their 50s isn't exactly cheap -- especially if he has any serious medical conditions, which it sounds like maybe he does? Have you looked into what kind of financial obligation you might be incurring here?

And if your uncle doesn't have some kind of problem that means he doesn't have long to live -- um, you *do* realize that there's a chance you'll be paying these premiums for 30 or more years, right?

If you don't have his permission to do this, you may be out of luck. At a minimum, you'll need his social security number to apply for the insurance on his behalf. It's very possible that the insurance company could require medical information from him, and may even want him to have a physical exam before they'll agree to insure him.

You know, you might be better off just starting a savings account and depositing X amount of dollars each month, with the goal of paying off the funeral expenses. Your choice.

Answer 4

anyone can be made the beneficiary of an insurance policy  and the proceeds of the policy does not fall under the estate laws.  You would be safer to get some sort of contract written by an attorney signed by you and your uncle to demonstrate (should the issue ever come up) why the policy was taken out and that he was not coerced into agreeing to it.  I think that your uncle is very lucky to have someone willing to assist him with these burdens.  Make sure that he also has a will just in case he dies with bills other than the funeral and they do not come after you to pay for them beyond to value of the policy.  All of this should be discussed with an estate planning attorney.

Answer 5

it depends on the state, but as a rule of thumb i would say yes. he would have to sign the application as the insured, and you as the payor, as to beneficiaries, they can be whom ever you want. it is probably best to keep yourself as owner also, so you have control on cancelization, use of the policy besides death benefits, etc.

Answer 6

Sure you can, he just needs to sign the applications, release the medical information, and submit to any medical examinations.  

Phew, though, that life insurance and long term care isn't going to be cheap at his age!!   Even if he's perfectly healthy!