My dad is 58 spinal cord injury. Says he has a small life insurance policy $5000. The other one he did have he took loan out against it then didn't pay it back and they dropped him. Anyhow he smokes and is disabled. He has this bad thing on his nose. He told me you better get life insurance on me before they tell me its cancer and its in my medical record. He got life insurance on his mom before she passed of stage 4 ovarian cancer last year. He used some for her funeral and the rest to pay things. Anyhow i was wondering if its just wrong to take life insurance out on my dad - or smart? thoughts?
Thanks!
Speaking as a licensed agent:
We are likely looking at "Final; Expense" plans which are simplified issue
They are of several types:1 Pay Premium& get immediate Death Benefit (DB)
or
2. a Graded policy: Pay premium and get a % in first year, a larger % in second year; and then after one or two years, (Often two) get the full DB.
3. Another Is pay premium, and if Death occurs in 1 or 2 years, get all $$ paid in plus an additional 10%...
All of those beat the return on a CD which is likely under 1%
Now If there is any $$, and it looks like MEDICAID as in Nursing home is coming: A Funeral Trust is in order, as There is no Medicaid look back on that, and the funds can't be attached by creditors: Hospitals, Nursing Home, Dr. Credit cards, someone else lawyer.
And oh by the way it is generally good practice to have policies on those whom you have insurable interests.
Good luck and -- Buy the insurance if you find a good deal but be aware that it is amazing how long our old folks can hang on.
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