Life insurance policy for parents

Divine Master of Unknown

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Apr 30, 2010
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I've been wondering...

I'm working and both my bro and sis are still studying, I've been pondering that I won't have any means to help them complete their studies should anything happen to my parents right now.

My mother told me she's basically paying for their studies with her pension money (teacher for 20 odd years and retired since 4 years ago).

I did some research and noted that most of these so called life insurance policies do not allow you to let you (as the child) pay the policy.

Anybody have any ideas?
 

Brewmaster

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How would they know that you're paying if you give the money to your mother?
 

Divine Master of Unknown

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How would they know that you're paying if you give the money to your mother?
Valid point. I just thought there's a more convenient way (for the record my mother is the one who suggested I do some research in finding a way I can pay it and sort of manage paying their payments for their studies)
 

ClintZA

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I've been wondering...

I'm working and both my bro and sis are still studying, I've been pondering that I won't have any means to help them complete their studies should anything happen to my parents right now.

My mother told me she's basically paying for their studies with her pension money (teacher for 20 odd years and retired since 4 years ago).

I did some research and noted that most of these so called life insurance policies do not allow you to let you (as the child) pay the policy.

Anybody have any ideas?

If there is an insurable interest then the taking of cover should be allowed. What they are trying to avoid is children taking cover on elderly parents in the hope of a windfall when they die. Sounds harsh but it happens. If you can show financial dependence on your parents, or your siblings can, then the insurable interest exists. In fact, just the relationship alone should be enough to establish insurable interest.

Just remember that the rates for the cover are likely to be a lot higher for your parents due to their age and health. If they are in poor health then being uninsurable could also be an issue.

In saying that, this would apply to you owning a policy which covers your parent's lives. If they own the policy and you merely paid it then I can't see that there would be any issue at all.
 
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Divine Master of Unknown

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If there is an insurable interest then the taking of cover should be allowed. What they are trying to avoid is children taking cover on elderly parents in the hope of a windfall when they die. Sounds harsh but it happens. If you can show financial dependence on your parents, or your siblings can, then the insurable interest exists. In fact, just the relationship alone should be enough to establish insurable interest.

Just remember that the rates for the cover are likely to be a lot higher for your parents due to their age and health. If they are in poor health then being uninsurable could also be an issue.

In saying that, this would apply to you owning a policy which covers your parent's lives. If they own the policy and you merely paid it then I can't see that there would be any issue at all.
Thanks! This, after some thinking, actually makes some sense.

Now to get hold of my siblings who are still running around enjoying the holidays :)
 

ClintZA

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Thanks! This, after some thinking, actually makes some sense.

Now to get hold of my siblings who are still running around enjoying the holidays :)

No worries. Feel free to pop me a PM if you have any other queries I could possibly assist with. Good luck.
 

ant_man

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Thanks! This, after some thinking, actually makes some sense.

Now to get hold of my siblings who are still running around enjoying the holidays :)

The children have an Insurable Interest in the Parents, so you dont need any proof.

Proof will only be asked for at Claims Stage and Not at New Business Stage.
And regardless if your Siblings are studying or not you may still cover them.

You can and are allowed to Pay the Premiums For Your Parents. You will own the Policy.

Hollard has a good Plan for Parents but it all depends on the Level Of Cover you are looking for.
 
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