Life Insurance for 80 year old

[07mateusz]

My father is 80, if I get a policy for him using my address and NOT his, will they pay me when I file a claim?

 

[hannahjane]

@07mateusz He must participate in the application and answer questions pertaining to his health in the application. Further, you can’t forge his signature. I would list his address as the insured and you and your address as the policy owner which ensures billing and policy communication is sent to you.

Lying about his address could be grounds for rescission and claim denial - especially if you’re obscuring that he is living in a nursing home.

 

[harris316]

@hannahjane And also often the exam is done by a visiting nurse or PA. Are you worried about your father taking out a life insurance policy would look bad?

 

[ativyl]

@07mateusz There are 4 people in a life insurance contract:

• The payer who pays the bills
• The person being insured
• The beneficiary who collects the money
• The controller who can make changes on the accounts

In theory all 4 of those people can be different people. There are some tax limitations about breaking it up too much. You can insure your father setting yourself as beneficiary. Though he has to consent to the policy.

 

[learningasigo]

@ativyl The tax law is based off of the first three actors. For more info, Goodman's Triangle is what governs this: https://cbsbrokerage.net/wp-content/uploads/2020/03/The-Goodman-Triangle.pdf

 

[adoptedwatcher]

@07mateusz The address doesn't matter.

What matters is that your name is on the policy as beneficiary.

 

[07mateusz]

@adoptedwatcher Thank you!

 

[learningasigo]

@07mateusz Don't listen to @adoptedwatcher, the address 100% matters. Insurance is administered and governed on a state by state basis. It sounds like your father lives in a state that doesn't have a product approved for someone above the age 80, but you do. @hannahjane was correct falsifying and address is ground for recession. Do not do it. HOWEVER you're not out of luck.

Thinking critically, there is a way around this. You can create a residence for your father in your state......draw up a rental contract.

Thus if it is ever challenged your father lived with you for a brief period of time for fair market rent in 2024. Problem solved. Without falsifying any information on any insurance application.

 

[adoptedwatcher]

@learningasigo

Thinking critically, there is a way around this. You can create a residence for your father in your state......draw up a rental contract.

Thus if it is ever challenged your father lived with you for a brief period of time for fair market rent in 2024. Problem solved. Without falsifying any information on any insurance application.

"dude_knows_insurance" is suggesting fraud. All I meant was that the insured's address doesn't matter when the claim occurs as long as the application was truthful. You don't have to phony up an address to get your Dad a life insurance policy. You can pay for the policy, you can own the policy, you can be listed as beneficiary, and collect when he dies. All he has to do is sign the application and qualify in answer to the questions on the application. No finagling necessary.

 

[learningasigo]

@adoptedwatcher It seems we’re misunderstanding each other here @adoptedwatcher I think we’re both correct just reading the question differently. One cannot form a group or a residence solely for the purpose of purchasing insurance. But if there were other reasons for the person‘s father to be living with him (say live in care) and paying fair market rent. It is a completely valid way for him to get his father coverage that otherwise unavailable to him in his current resident state.

How I interpreted the original question was that his 80-year-old father lives in a state in which one cannot get life insurance for an 80-year-old (ie a place like PA). I could’ve been wrong in my reading, but the solution I proposed was completely valid and compliant.