Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Yes. This is a very common scenario for people to buy life insurance. Her medical history, determining how much coverage you want to apply for, and how long you want the guarantees to be in place are important factors in determining the premiums you would be looking at for the desired program.
There's many companies and programs to compare and an independent life insurance agent/broker can help find the policy that's going to work best for you and your mother.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Anyone can buy a life insurance policy on another if they have an insurable interest. Since you would probably be the one to take care of her final expenses, you can buy a policy on her life. If you are going to pay the premiums for the policy, you should also be the owner. That way the proceeds will pass outside her estate and not be subject to claims by others. This is critical if there are other siblings who may feel that they should receive a share of the proceeds. Since the policy you are considering will need to last her lifetime, permanent insurance is probably what you will need.
Great question! You bet! I think it is great that you would help out your mom this way. The law says that you can take out life insurance on anyone that you would suffer a tangible loss from, should they pass. So while you could insure mom, you could not insure that guy down the block that you see once in a while, or the mailman. You and mom should sit down and decide exactly what plans she has, and then find a coverage and price that will take care of her need. Please contact me if you have any further questions, I'd be happy to help. Thanks for asking!
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There's many companies and programs to compare and an independent life insurance agent/broker can help find the policy that's going to work best for you and your mother.