Life Insurance on Relative?

[Jaydepps]

Hello, my father is interested in taking out a life insurance policy out on his father at his request. Is this legal and would you recommend any companies? My grandpa suggested it so we could pay off my student loans and my brother's future student loans. Thanks

 

[anteater]

There's nothing illegal about it. There are plenty of life insurance companies/agents around. I don't think that anybody posting here (other than spammers) will make suggestions.

But a couple thoughts:

If grandpa is the insured, it will probably be very expensive insurance. Who is going to pay the premiums? It might be more cost effective to use the funds that would go toward premiums to pay the loans directly.