Life insurance & baby?

Question

My husband and I have life insurance on our newborn son. His grandmother just told me she does as well..but I wasn't asked or notified beforehand. Is this legal, for both parents & grandparents to have a life insurance policy on a child? Also, for the grandparent to take out a policy without permission? One last question, what would be the purpose of two separate policies on one child??

ANGRY~!

Answer 1

Anyone that has a financial or emotional connection to a person, can buy insurance on that person. Sometimes, a grandparent will buy whole life that the child can convert and take over when he/she turns 18 or 21. Very normal and nice of them to do it.

Answer 2

Yes you can have two policies on the child. No, the grandmother cannot put a policy on the child's life without parental consent (signature of one parent) Perhaps the grandmother's plan isn't true life insurance and only some type of savings plan.

The only reason at all to have life insurance on a newborn in my mind is for tax sheltered savings so it wouldn't mater how many of these you had.