I think you need the insured’s consent and an insurance interest. The interest is clear. Have you discussed this with them?
I don't see the point in paying for life insurance once you have zero liabilities and a sizable nest egg and the kids are grown and earning there own livings. But that is me, some would disagree.
I have been advised to take out life insurance policies for them, or have them do it. Have to plan for contingencies.
I think this is the key phrase. Life insurance is appropriate not because of the likelihood of premature death but because the financial consequences are catastrophic.This would put a crimp in our retirement (an understatement).
This does not sound like a good advice. What is the likelihood of a young person die, or multiple ones die? Unless you know there is a high likelihood, this is a waste. The bigger likelihood is for your "alive" children to unable to pay off their loan on time. That's the part you need to have some contingency. My opinions, of course.
I think you need the insured’s consent and an insurance interest. The interest is clear. Have you discussed this with them?
I think this is the key phrase. Life insurance is appropriate not because of the likelihood of premature death but because the financial consequences are catastrophic.
Now that I'm 1 yr away from retiring, I'm looking at my adults children who have student debt. I am co-signer on a bunch of student loans so, if anything happens to them (God forbid) I am on the hook for their debt.
This would put a crimp in our retirement (an understatement).
I have been advised to take out life insurance policies for them, or have them do it. Have to plan for contingencies.
Has anyone else taken this step?
Thx,
Rob
Unless it is enough money to cause you trouble if one of them should die, let it be. The optics are bad. And the chances that any of them would die are very low.
Ha
No, you do not need the insured's consent.... all you need is an insurable interest.
When I Google this question everything I read say you DO have to have their consent.
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.
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