Life Insurance On Parents Without Their Consent
There are several reasons why you might want to purchase life insurance on a parent, but you’ll need their consent to do so. Obtaining a life insurance policy on a parent without their consent would be considered insurance fraud. Plus, the way life insurance policies are designed, it would be very difficult to take a policy out without them knowing.
Taking Out a Life Insurance Policy On Parents
Following your parent’s death, you (the child) will most likely be negatively affected financially in one way or another — this is recognized as insurable interest. Purchasing life insurance on your parent can ensure that you don’t inherit their debt, or have to pay funeral and burial expenses out-of-pocket. Death benefit proceeds can be used to help:
- Pay for funeral and burial expenses.
- Offset long term care expenses.
- Satisfy any remaining debt obligations.
But as we mentioned earlier, you can’t buy life insurance on someone with insurable interest alone — that’s just the starting point. The next steps you take will require your parent’s knowledge and assistance.
Getting The Information You Need
Even if you don’t have regular contact (or a close relationship) with your parent, involve them from the beginning. If you talk to them about your intent to take out life insurance before starting, the process will go much more smoothly. Once they’ve consented to taking out the policy, gather the information you’ll need, including their:
- Contact info
- Social Security number
- Driver’s license number
- Primary doctor info
- General medical history
Aside from general contact and medical information, your parents likely will need to answer questions about their health. Additionally, the insurance company representative may have to come in person to check your parent’s blood pressure, and measure their height and weight in person. Then, the same representative will need to draw their blood, and collect a urine sample for the pre-approval medical exam.
Finally, the life insurance policy contract will require your parent's signature. Even if the type of policy you buy doesn't require a medical exam, they'll still need to sign it.
If you attempt to purchase a policy on your parent by forging their signature, or falsifying medical examination materials, you will be committing insurance fraud. This will result in the invalidation of the policy, and the insurance company will deny your claim if you try to file one. You could even face criminal charges.
Purchase Life Insurance On Your Parent The Right Way
The death of a parent can be a true tragedy and financial burden. It may mean having a difficult conversation with your family, but applying for a policy and getting approved can only happen with the insured’s consent.
*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.