Insurance Library notes that the two most common instances that allow an adult child to obtain a life insurance policy for a parent are when the adult child is positioned to suffer financially when the parent dies and when the child provides financial support to the parent. An adult child can purchase a life insurance policy for a parent without meeting these qualifications if the parent owns the policy.Know More
HealthandAutoInsurance notes that for an adult child to own a parent's life insurance policy, the child must be able to prove insurable interest to the insurance company. This means that the child has to be able to show how the parent's death is set to negatively affect the child's finances. The reason for this is that the insurance company is unwilling to insure something that does not result in a negative financial impact when it's gone. The parent must also be a part of the underwriting process regardless of who is purchasing the policy.
According to Insurance Library, the benefit amount for a parent-owned life insurance policy depends on age, net-worth and income, regardless of who pays the premium. The parent must be able to sign the life insurance application documents to show agreement to the policy.Learn more about Insurance
Although you can exchange one annuity for another annuity, Nasdaq reports that you cannot exchange an annuity for a life insurance policy. However, you can exchange an existing life insurance policy for an annuity.Full Answer >
A paid-up whole life insurance policy can be surrendered by terminating the policy upon which the policyholder receives the cash surrender value, according to Investopedia. The cash surrender value is the amount of money the insurance company pays to the policyholder when the policy is terminated before its maturity.Full Answer >
Types of life insurance policies include whole life, universal life, variable life and variable universal life. The various types of insurance come with different durations, structures, costs and variations.Full Answer >
Indexed universal life insurance provides most of the features found in other universal life policies with the added option of investing a part of the policy equity in the performance of one of the major stock indexes. The potential investment gain is capped, but the investment principal is guaranteed.Full Answer >