Life Insurance on a relative

[DSLV]

What is the name of your state?

I live in Nevada and my sister lives in Virginia. We are both over 50 and the last from our bloodline. Is it possible for me to take out a life insurance policy on her? As a gov employee, she seems to think her "free" $10k policy will be adequate should anything happen and I can't get her to see otherwise even after going through the settling of our mothers affairs, who also was a gov employee and only had the $10k policy.

Thank you for any help and will answer any and all questions for clarification.

 

[moburkes]

What is the name of your state?

I live in Nevada and my sister lives in Virginia. We are both over 50 and the last from our bloodline. Is it possible for me to take out a life insurance policy on her? As a gov employee, she seems to think her "free" $10k policy will be adequate should anything happen and I can't get her to see otherwise even after going through the settling of our mothers affairs, who also was a gov employee and only had the $10k policy.

Thank you for any help and will answer any and all questions for clarification.

You need her permission to buy a policy on her. You also both need to be present at the time of purchase (one sister is visiting the other sister, for example). Or, she could take out a policy on herself, and then once its issued, she can change the ownership of the policy to you, at which point you are responsible for the payments, and can change the beneficiary (to yourself). But she's not required to make this change, so you have to be sure that she will do so.

She might think its enough, because she doesn't care (many people don't care what happens after they die). Why do you think she needs more insurance? You won't be responsible for settling her affairs, and are not required (if you are the beneficiary) to use the money to do so (settle her affairs).

 

[Dandy Don]

The insurance company can tell you whether permission is needed or not.

If you are buying life insurance permission may be needed. If you are buying burial/funeral expense insurance, permission may not be needed.

If your sister has dependents (children) and a job, she/you may want to consider getting a policy that is worth much more than $10,000--you may need to get one for $100,000 or more, depending on her income (reasonable monthly premiums can be purchased through Zander Insurance--www.zanderins.com). The survivors will need much more than $10,000 to live on after she is gone and that is what life insurance is for.

DANDY DON IN OKLAHOMA ([email protected])

 

[DSLV]

I thank you both for your answers.

Why do you think she needs more insurance? You won't be responsible for settling her affairs, and are not required (if you are the beneficiary) to use the money to do so (settle her affairs).

While I'm not legally responsible for settling her affairs, don't you think as her only living relative I would have a desire to do so out of love? And if not me, would you suggest I turn my back on my moral obligation to do so and allow her affairs to be handled by a stranger or court-appointed lawyer and not want any part of her personal (family) effects?

Your first paragraph helped with my question---the second was totally unnecessary.

 

[Dandy Don]

If she has children, believe me they will be much happier if they were getting $100,000 instead of $10,000. Not from the policy YOU buy, but from the policy SHE should be getting on herself.