As a parent, can you buy a life insurance policy for your adult child if they won’t? Well, the answer is yes but with a few strings attached.
You can initiate the contract for your adult child, however he or she must be 100 percent aware and personally speak to an agent during the application process. Plus, they must complete any requirements of policy approval, such as a medical exam or medical interview.
Nonetheless, you as the parent can be the payor, beneficiary, and most importantly, the catalyst to ensure the financial welfare of your grandchildren.
As children get older, the responsibility to purchase a life insurance policy falls on them. But what happens when these individuals choose to forgo life insurance?
A recent column by the Christian Science Monitor offers advice for parents who find themselves wanting to buy life insurance for their adult child.
Buying Life Insurance For Another Adult
One reader considered buying a policy that would cover her son. Despite having a family of seven, the son refused to buy a policy to ensure their finances. In the event of his death, such financial responsibility would fall to his parents, according to the report. The reader may be able to purchase coverage for her son, the report continues.
“If he’s not going to do it, you absolutely can take out a policy on him with you as the beneficiary,” the report says. “This is to protect yourself in that situation.”
But before you take out a policy, you’ll need to have a long conversation about your plans with your adult child. You should focus the conversation on the importance of life insurance and the options that it can provide.
Many times it’s a lack of knowledge, not money, that holds people back from purchasing life insurance. This is particularly evident in the cases of young people who feel invincible. And if a parent’s son or daughter is healthy, all the more reason to purchase a policy before an accident occurs or medical conditions change.
Why Life Insurance is a Good Idea
If making ends meet is difficult, and parents are willing to help, a conversation with a financial planner will help reveal the best available options.
A term-life policy may be the best choice for parents in this situation because it offers an affordable way to accumulate savings without any of the complications of an investment. A whole-life life insurance policy may also offer college tuition opportunities as well.