Who Can Buy Life Ins. and Sign App?

[SunnyDaze]

I thought immediate family members (those who have insurable interest) could purchase life apps on the other family members.

I know I was able to purchase a policy on my brother (a smallish one, $25,000 as a final expense plan) a few years ago, and he did not need to be involved with the purchase.

From reading through the forum, it seems the insured has to be able to sign the app?

What about adult children obtaining policies on the parent, so they don't get a nice surprise of a bill later?

Is this a carrier or state specific provision?

Thanks to anyone who can clear this up for me.

 

[Newby]

I thought immediate family members (those who have insurable interest) could purchase life apps on the other family members.

I know I was able to purchase a policy on my brother (a smallish one, $25,000 as a final expense plan) a few years ago, and he did not need to be involved with the purchase.

From reading through the forum, it seems the insured has to be able to sign the app?

What about adult children obtaining policies on the parent, so they don't get a nice surprise of a bill later?

Is this a carrier or state specific provision?

Thanks to anyone who can clear this up for me.

You can usually buy a Preneed funeral policy up to $25,000 on any relative without their knowledge or involvement.

With all other life insurance companies that I know of, the insured must sign off on it.

What company was your policy through?

 

[moonlightandmargaritas]

I thought immediate family members (those who have insurable interest) could purchase life apps on the other family members.

I know I was able to purchase a policy on my brother (a smallish one, $25,000 as a final expense plan) a few years ago, and he did not need to be involved with the purchase.

From reading through the forum, it seems the insured has to be able to sign the app?

If you want to be a professional in this business, and learn about "insurable interest", do yourself a favor and take a CLU course (as opposed to listening to the feeble opinions of the nitwits (not all, but a LOT) on this board):

The American College

 

[SunnyDaze]

You can usually buy a Preneed funeral policy up to $25,000 on any relative without their knowledge or involvement.

With all other life insurance companies that I know of, the insured must sign off on it.

What company was your policy through?

Thanks for that info, Newby. I need to learn more about Preneed, then. Advice on where to learn?

I don't remember the company, it was one that was either on TV or came in the mail. That was a few years ago, (before I got a license) and when my brother got a job with insurance, we dropped this plan.

I wonder about disabled folks...those who can't sign the apps...mentally handicapped, etc. Is a Preneed funeral policy like a regular insurance policy where they can make payments? Or is it only single premium? Thanks.
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If you want to be a professional in this business, and learn about "insurable interest", do yourself a favor and take a CLU course (as opposed to listening to the feeble opinions of the nitwits (not all, but a LOT) on this board):

The American College

That is good advice, Moonlight. I do know of insurable interest as far as businesses go, and what a disaster I see with the lack of taking care of insurance in my in-laws lives, but that is all I know.

I will check into that. Thanks.

 

[Benjamin Irons]

Depends if the policy is underwritten, where there are disclosures, the life insured needs to sign the application to confirm the disclosures are correct... O

 

[SunnyDaze]

Depends if the policy is underwritten, where there are disclosures, the life insured needs to sign the application to confirm the disclosures are correct... O

Makes sense, Benjamin. I was thinking of an adult child who knows the parent's medical history, and who lives away from the parent. The child can't just go and get a FE policy to pay for the parent's burial expenses, huh.

I also wonder about the GI plans, no questions asked, just wait 2 years. Why would the insured have to sign it, if they were somehow unable to understand it?

I know of mentally challenged folks who need burial policies to help their families out. These people in no way would be able to understand what they were signing. In the case of one paranoid schizophrenic I know, she definitely would not sign it, even though she would understand what was happening, kind of.

These situations are tragedies for all involved.

What can the families do then, for burial coverage?

Thanks for responding.

 

[Newby]

Thanks for that info, Newby. I need to learn more about Preneed, then. Advice on where to learn?

I don't remember the company, it was one that was either on TV or came in the mail. That was a few years ago, (before I got a license) and when my brother got a job with insurance, we dropped this plan.

I wonder about disabled folks...those who can't sign the apps...mentally handicapped, etc. Is a Preneed funeral policy like a regular insurance policy where they can make payments? Or is it only single premium? Thanks.

I will check into that. Thanks.

Preneed is available as monthly payments or single pay. It's mainly sold by agents who work with funeral homes.

If you did that off a policy sold on TV, there may have been some forgery involved.

 

[SunnyDaze]

Preneed is available as monthly payments or single pay. It's mainly sold by agents who work with funeral homes.

If you did that off a policy sold on TV, there may have been some forgery involved.

Hmmm. That doesn't sound like something I would have done. Wait...I remember speaking with an agent over the phone, and telling her I was buying it to cover my brother, because he and my other brother are my only family left, and I did not want to pay for another funeral, out of pocket.

And Preneed policies differ from FE how...besides you don't need the insured's signature for $25,000 and under? Do they get assigned to the funeral home? Thanks.

 

[Tearmann]

Makes sense, Benjamin. I was thinking of an adult child who knows the parent's medical history, and who lives away from the parent. The child can't just go and get a FE policy to pay for the parent's burial expenses, huh.

I also wonder about the GI plans, no questions asked, just wait 2 years. Why would the insured have to sign it, if they were somehow unable to understand it?

I know of mentally challenged folks who need burial policies to help their families out. These people in no way would be able to understand what they were signing. In the case of one paranoid schizophrenic I know, she definitely would not sign it, even though she would understand what was happening, kind of.

These situations are tragedies for all involved.

What can the families do then, for burial coverage?

Thanks for responding.

Agreed its a tragedy... All the carriers I have worked with require an adult to sign the app. For people mentally incapable of understanding, I've alway had the family member present who would be the payor.

I have also set them up as the policy owner and benny.

 

[Newby]

Hmmm. That doesn't sound like something I would have done. Wait...I remember speaking with an agent over the phone, and telling her I was buying it to cover my brother, because he and my other brother are my only family left, and I did not want to pay for another funeral, out of pocket.

And Preneed policies differ from FE how...besides you don't need the insured's signature for $25,000 and under? Do they get assigned to the funeral home? Thanks.

Preneed policies are different in several ways.
1. They are always limited pay plans, (paid up in 3, 5, or 10-years)
2. They guarantee graded coverage (most are 70% after 12- months, 100% after 24- months) some will cover 35% after 6-months
3. They have an increasing death benefit. When sold through a funeral home, the funeral home will guarantee the funeral price forever in MOST cases. Some states require this. In others it's optional.
4. They are assigned to a funeral home but the owner can change funeral homes anytime they want. They can also cancel the funeral home assignment anytime they want and just have it as an insurance policy. the beneficiary will get any amount that you don't use at the funeral home.
5. They can optionally be irrevocably assigned for an immediate exemption from Medicaid. Even if irrevocably assigned, the owner can always transfer to a different funeral home.
6. The death benefit is paid within 24- hours with no death certificate required.