Life Insurance...touchy subject

Hi All!
I have been wondering about this for a little bit.
I was thinking about putting life insurance on my mother. She is not about to die or anything like that, but my friends and I are getting to that age where our parents are getting older and some of them are passing away.
I see some of my friends who are cashing in on some big life insurance policies that their parents took out on themselves; hoping that their children will have a better life and money to pay for their funerals and the bills they have left behind.
And I'm not about to knock off my parents either, I'm just thinking about the future. This could be a secure way to make some extra cash, not just for myself, but in case there are bills that need to get paid etc... after she passes away.
What are your opinions about this? Have any of you put life insurance policies on your parents?
Since I think this is might be a touchy subject when I bring it up, I was hoping someone has some tips on how I can talk about this with my mom without her getting upset. I hope she won't get upset if I ask her.

Thanks for reading,
Brother Chris.

Re: Life Insurance...touchy subject

The reason for L/I IS to take care of surviving spouses and children.
Take out Term, and you pay the bill. I see no problem

Re: Life Insurance...touchy subject

Are you absolutely sure that mom doesn't already have life insurance? Not everybody is opened about telling people these things. I personally have life insurance. I don't see why it would upset mom to talk to her about the subject, it's not like you are looking forward to being rich and waiting for mom to kick the bucket. Mom should have just as much concern about life insurance as you do.

I would definitely look out for the different companies and compare. Some life insurance policies are only good in a "natural cause" death, in other words they only cover natural deaths, not accidents or murder if I'm not mistaken.

Re: Life Insurance...touchy subject

What's the relationship with your mother like? If it's good and she understands why you're raising the subject she shouldn't get to upset. Yes, it's a touchy subject, but it's also a reality.

Maybe bring it up as a discussion about someone else (fictious even)... Like "a friend of mine's father died and he didn't have LI. The bills he left and the funeral costs....." That may work.

What ever you decide, good luck....

Chris.........

Re: Life Insurance...touchy subject

I know she has life insurance, but I'm not sure how much. This is something I've never talked about with her. She had mentioned before that she has life insurance, but that was about it.
We have a great relationship...so that's not an issue.
We live on opposite sides of the country, so it's not like I can sit down and chat with her, although I am going back for a visit in October.

Chris.

Re: Life Insurance...touchy subject

after my momdelt with the bills my dad left and not enough insurance to cover it she went out got more then enough to take care of everything

Re: Life Insurance...touchy subject

Can you take out insurance without her signing the papers?

Re: Life Insurance...touchy subject

Often a person can not take out a policy on anyone else unless they have a vested reason and need. If the death of the person would create a need for money like bills YOU would be responcible for etc you have reason but in most cases THE INSURED has to take out the policy and then make you or whoever the benefit receiver. As far as taking out the policy without her knowing it I would say no.

Re: Life Insurance...touchy subject

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Re: Life Insurance...touchy subject

I'll make sure she knows about it and definitely discuss it with her.
Thanks yyz for the input about the taxes...

Re: Life Insurance...touchy subject

You should talk with your mom a bit more about her overall financial situation, not just insurance. yyz's comments about inheritance taxes are an excellent example.

Life insurance is to provide for expenses of the survivors. By the time my wife and I retire, we won't need that income replacement. Thus, we have term life insurance that will expire in our early 70's. By that time we will have grown our other assets to cover final expenses etc. At least, that's the plan.

Let's face it -- insurance companies exist to make a profit. They're not going to sell a policy they think they're going to lose money on. Shop around. If you can even get an insurance policy on your mom (how old is she?), I'll bet you'll find the premiums to be so high it's almost not worth it. You'd be better off to take those premiums and put 'em in a mutual fund or bank account.

TANSTAAFL

Re: Life Insurance...touchy subject

we just went thru this with Sylvia's 97 y/o Mom. she had life insurance, didn't know how much, some from back in the 1930's, that she had paid on all her life. she was over $40,000 in debt to credit cards. and kept recieving increases from the credit card companies. She pasted away in September. Florida law was that the Funeral Expenses were paid first, then the creditors got there share. guess what, nothing was left. so those stupid credit card people that kept extending credit to a 97 year old woman, came out with nothing.

but we as credit card customers are paying off all those bad debts, extened to bad credit risk, in our high interest rates.

my point is to have enough insurance, to take care of her, the way she wants, and don't worry about the rest.

Re: Life Insurance...touchy subject

I'm going to talk to her this weekend and maybe we can come to an agreement that she raises her life insurance and I pay the difference. That might work better. I'll ask her to check her life insurance policy and see how much more it will cost to tack on another $50,000 or so. Of course that all depends on how much she already has on her policy
My mom is just about to turn 60, so she has a way to go before she passes away.