Anyone take out life insurance on their kids?

[gwraigty]

Quote:

Originally Posted by MissMolly When I Google this question everything I read say you DO have to have their consent.

Yes. This makes sense. Here is one article that specifically mentions the OP's situation:

"The person whose life is insured must sign the application, giving permission for the insurance company to collect data, such as motor vehicle records, prescription drug records and information submitted on previous health and life insurance applications. And, often, the person has to undergo a life insurance medical exam as part of the application process."

https://www.nerdwallet.com/blog/insu...-someone-else/

"You co-signed a loan: The lender will come after you if the borrower dies. If repaying the loan would be a hardship, then consider buying life insurance on the borrower and naming yourself as beneficiary. An exception is federal student loans, which are discharged if the borrower dies. Whether private student loans are forgiven when the borrower dies depends on the lender."

[Moemg]

My son died suddenly at 31 and he still had student loans . They hounded us until we proved beyond a doubt He had passed . Apparently students fake their death to get out of paying student loans . Take out the insurance .

[albireo13]

I haven't talked with the kids yet on it. Still deciding on the path to take. I think it makes sense. We have 5 children and their student debt will be around for decades after college. The likelihood that something bad happens is not insignificant.


Some is federal student loans but a bunch (>50K so far) is private where I had to cosign.

[gwraigty]

Quote:

Originally Posted by albireo13 I haven't talked with the kids yet on it. Still deciding on the path to take. I think it makes sense. We have 5 children and their student debt will be around for decades after college. The likelihood that something bad happens is not insignificant. Some is federal student loans but a bunch (>50K so far) is private where I had to cosign.

As posted above, unless your kids give their consent to you taking out life insurance on them, you'll have to take the path of hoping they pay off their student loans themselves. Although, I don't know why they would object, since you'd be paying the premiums.

[isisdave]

You need an "insurable interest" to be the owner of the policy, and you'll need the child's consent to apply for one. But if you're obligated on the loan, that should be enough, and you should be the owner so the child can't change the beneficiary to anyone else. If you buy 10-year term for the amount of the loan on a 21-year-old, it shouldn't cost much at all.

On a different tack, back in '49 my parents bought a policy with face value of I think $10,000, and it was single-premium term until age 30. The good thing is that it permitted me to buy $10k more at 21, 24, 27, and 30, or at marriage anytime, without evidence of insurability. This could be very important if the child becomes injured or disabled or develops illness before adulthood. It was very very cheap. I think Gerber baby food company promoted it. I bought something similar for my child in 1970. I imagine there's something similar today.

[charais]

What about consolidating the loans and doing a refi? You might be able to get a lower rate and also get your name off the loan. I think I got a mailer from Navy Federal a few days ago offering student loan consolidation at 4% rate. YMMV

[Teacher Terry]

Moemg, I am so very sorry about the loss of your son. My friend lost her daughter at 19. It’s so hard.

[albireo13]

Quote:

Originally Posted by charais What about consolidating the loans and doing a refi? You might be able to get a lower rate and also get your name off the loan. I think I got a mailer from Navy Federal a few days ago offering student loan consolidation at 4% rate. YMMV

I was suggesting to my son to pursue a refi once he graduates, to consolidate.
Question ... can he refi right after graduating without needing a co-signer?
I am assuming he could be employed right away.