by tattowayne » Wed Mar 06, 2013 11:38 pm
im her grandson i was wondering can i get insurane on her shes 71 she has nevered smoked last year or maybe year before last had a pace maker put in i like to at less have her burial took care of and her remaining bills .no onne else seems to worry about it if any can someone point me in the right direction she allso lives in alabame,i live in mississippi
Posted: Thu Mar 07, 2013 03:57 am Post Subject:
Unfortunately, there usually is not "insurable interest" between grandparents and grandchildren, although it's on the fringe. But that's a matter for the insurance company to decide. In any event, you could not get insurance issued on your grandmother's life without her cooperation. She must answer several health questions and sign the application for insurance. To do this any other way, without her knowledge or consent is a crime.
The fact that your grandmother has a pacemaker means that she suffers from some form of cardiovascular disorder, which takes her into the "substandard" market, which is (1) very costly, especially when you consider her age, and (2) often results in being declined for insurance.
There are two possibilities. The first is to help your grandmother decide what kind of funeral service she wants, the casket (or cremation), etc. When she decides on the funeral director that will handle those details, she can purchase a "pre-need funeral plan" which includes a life insurance policy to cover most or all of the expense, which also gets "locked-in" as a contractual matter. The funeral directors work with specific insurance companies that provide "guaranteed issue" policies for the amount financed. Your grandmother (or you or anyone else) makes payments to the insurance company, and the funeral director is the beneficiary of the policy.
When your grandmother dies, the funeral director takes care of everything with little or no other out of pocket expense (unless they sell you some sort of "upgrade" -- which you don't need and don't have to buy). They file the death claim with the insurance company and that's that.
The second is to find your own "guaranteed issue" life insurance and apply directly for a certain amount of money. The usual maximum is $25,000 to $50,000. It's not cheap -- several thousand dollars per year for $50,000. But there are companies that advertise this stuff on TV, so it's not hard to find.
Personally, the pre-need funeral plan is a better way to go, in my opinion. All of the important details are settled while the person is alive. They get the funeral that they want, not what the funeral director guilts you into puchasing after someone is already dead.
Hope this helps.
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