Buying insurance on grandchild’s father

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spindoc
Posts: 8
Joined: Wed Jan 28, 2015 10:29 pm

Buying insurance on grandchild’s father

Post by spindoc »

My wife and I are interested in purchasing a term life policy on our grandchilds’ father, in order to protect our retirement nest egg if he should pass, as our daughter is not able to support our granddaughters’ needs without his support. We are concerned that we would be spending some of our resources in child support that would otherwise go to our retirement. They are divorced. He has given us permission to purchase a policy and would be fine with the medical questionaire and evaluation.
My question is simply how we should go about this. Thanks in advance.

Spindoc
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Stinky
Posts: 6464
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: Buying insurance on grandchild’s father

Post by Stinky »

spindoc wrote: Wed Jan 13, 2021 1:50 pm My wife and I are interested in purchasing a term life policy on our grandchilds’ father, in order to protect our retirement nest egg if he should pass, as our daughter is not able to support our granddaughters’ needs without his support. We are concerned that we would be spending some of our resources in child support that would otherwise go to our retirement. They are divorced. He has given us permission to purchase a policy and would be fine with the medical questionaire and evaluation.
My question is simply how we should go about this. Thanks in advance.

Spindoc
It seems like this link is pretty much on point for your situation.

https://www.policygenius.com/life-insur ... eone-else/

It’s not clear to me that you have “insurable interest” in the life of your ex son in law. But it’s very clear to me that your daughter has insurable interest in the life of her ex husband.

I would think that a policy on ex SIL, with daughter as owner and beneficiary, would make sense. You could funnel the money to daughter to pay the premiums.

You could check in to whether you could be owner and premium payer, ex SIL is insured, and daughter is beneficiary. Don’t know if that would fly, but maybe so.

Post back with any questions.
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