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I want to know if this is possible with or without help from an adult, and if it’s legal.
I’m 13 and my grandmother is getting old. My dad lives with her but he has mental issues.
I don’t think they’ve considered life insurance.
A- If she already had life insurance would it be fraud to get ..well, more?
B- Consider that her insurance money would NOT go to me. Neither would the inheritance.
C- Could I do this without her knowing? I think telling her “Hey, grammie, you’re old, you’re gonna die soon anyways, let’s take care of the money first” SOUNDS REALLY BAD. Also, it could depress her. She doesn’t seem to acknowledge that she’s old…

So I need legal advice.
(Yes I know life insurance is a monthly cost. I’m willing to pay that.)

5 Thoughts on Is it legal to buy life insurance for someone else?
  1. Reply
    rtfm
    August 29, 2012 at 5:30 pm

    The part you don’t seem to realize is that life insurance is reasonably priced when you buy it for a younger adult, but the price goes up dramatically as the person ages. Life insurance for an elderly person in poor health would be prohibitively expensive.

    Oh, and you also couldn’t do it without your grandma’s participation. Sorry.

  2. Reply
    Dave
    August 29, 2012 at 5:44 pm

    You cannot purchase life insurance on anyone because you’re not a legal adult – only a legal adult can be the policy owner regardless of who is the beneficiary. Also, you CANNOT buy life insurance on another party without their knowledge and concurrence.

  3. Reply
    Bryce
    August 29, 2012 at 6:42 pm

    If you want to see an entertaining version of WHY it’s illegal to buy life insurance on another person, watch the 1944 film Double Indemnity. Or read the book, by James M. Cain.

  4. Reply
    StephenWeinstein
    August 29, 2012 at 7:10 pm

    1. “Legal advice” means advice obtained by meeting with a lawyer, by having a lawyer send you a letter, or by calling a lawyer on the phone, and it usually costs a lot of money. You cannot get “legal advice” on Yahoo! Answers.

    2. She might be too old to get life insurance, other than some really bad life insurance that usually does not provide any more money than you pay, often provides less, and provides nothing if she dies within two years.

    3. To briefly address your questions:

    A. No, if you wrote on the application for the additional life insurance application that she already had life insurance. No, if it did not ask. Yes, if you lied by saying that she did not already have life insurance.

    B. Who would get it?

    C. No.

  5. Reply
    mbrcatz
    August 29, 2012 at 7:39 pm

    No insurance company is going to sell a policy to a minor, so YOU can’t do it.

    When you buy life insurance on another adult, you can only do it with their permission and cooperation.

    So.

    a. No. there’s no limit to the number of policies you can have on your life. You have to disclose the other policies when you apply for a new one, but as long as you do that, and the insurance company agrees to issue another policy, no problem.

    b. It doesn’t matter who the benefiicary is. Whoever the policy owners is, gets to pick the beneficiary.

    c. No. This is illegal.

    Keep in mind, also, the older you are, the more the life insurance costs. The sicker you are, the more it costs. So . . . if she’s 70, and you can AFFORD $ 200 a month . . .you’re probably better off just putting it in the bank.

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