Life insurance: denied for too much coverage??

Question

I wanted to buy $50k policy on my 78 y/o mother for final expenses and debts. My insurance guy said that his company (Prudential) may denied the application, not because of her health but because:

1 - my sister already has $100k policy on my mom

2 - mom does not live with me nor will I lose financially when she dies. (this one actually makes sense!)

Can this be? I've always thought that:

A - if the insured is healthy

B - you can afford the premiums, heck buy as much as you want.

Not the case here with me though!

Can someone with industry knowledge shed some light on this rule?

Thanks if advance.

Answer 1

It is hard to say. You have to check it out yourself.here is some useful information for your question might be helpful.http://health-insurance.expert-tip.info/...

Answer 2

Do not take it for granted,use your own head to make the judgement.Here is a good resource I have tried.

http://insurance.online-assistant.info

Answer 3

Your question is not likely to be answered in one word.find useful tips here though.http://lifeinsurance.online-helpers.info...

Answer 4

Insurance must go through underwriting that takes into account current and potential income, longevity, risk, and need. You can't usually get a policy for that age person that is affordable. There are some legal issues on excessive amounts. You must also have some risk of loss as the owner of the policy, but that is usually waved for family. No company is going to take on a risk that they know 100% will cost them a lot of money.

Answer 5

No insurance company wants to have a state insurance commissioner call them in for questioning.

If a person has more insurance than a 'reasonable and prudent man' would expect, then there can be a violation of guidelines or laws.

For example, if a mobster took out a million dollar policy on my ex-girlfriend (who is worth little more than a plugged nickle), what would happen if she accidentally died?  

Can you imagine the investigation?  Properly so, I might add.

No company should ever be at too great a risk on any one life.  

There should never be a potential to 'profit' from the death of another person.

OK?

Answer 6

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