Insurable interest

by Guest » Tue Jul 12, 2011 02:07 pm
Guest

A parent took out a life insurance policy on his terminally ill son when the son was a young child. The child survived well into adulthood. Unbeknownst to the child for decades, the child's parent (who since remarried), still paid on the policy decades later and it is still valid. It is unknown who is the beneficiary of the policy.

The now adult child finds the policy on his life objectionable and wants it voided.

Is there anyway to do so?

Total Comments: 11

Posted: Wed Jul 13, 2011 12:31 am Post Subject:

The parent is most likely the beneficiay. Why does the child find this objectionable? Insurable interest was there in the beginning. The child can't do anything.

Posted: Wed Jul 13, 2011 03:30 am Post Subject:

As mentioned, the parent is paying the bill. It should not affect the "child".

Posted: Thu Jul 14, 2011 01:14 pm Post Subject:

What is an "insurable interest"? How does it affect a policy?

Posted: Thu Jul 14, 2011 06:34 pm Post Subject:

Insurable interest in a life insurance policy means that a person has a "pecuniary" interest in the continued life of the insured. If the insured were to die prematurely, that flow of money would be interrupted or terminated.

It affects the policy in the sense that insurable interest must exist, as specified in state insurance laws, at the time the contract of insurance is created. In life insurance, insurable interest is not required at any other time after that.

Posted: Thu Jul 14, 2011 07:42 pm Post Subject: helth insurance

How health insurance provide help to secure my family?

Posted: Fri Jul 15, 2011 02:29 am Post Subject:

Health insurance provides protection against the financial consequences of injuries and illnesses. By limiting your out of pocket expense, health insurance helps to protect your savings.

Posted: Sun Jul 17, 2011 01:27 am Post Subject:

If the son has access to the policy, he may like to check if there is any provision in the policy contract that mentions that once the insured child attains majority age, the ownership of the policy would be transferred to the son.

Posted: Mon Jul 18, 2011 10:00 pm Post Subject:

If the son has access to the policy, he may like to check if there is any provision in the policy contract that mentions that once the insured child attains majority age, the ownership of the policy would be transferred to the son.



This might actually be true. He would be well advised to contact the insurance company and inquire.

As others have already stated, outside of this idea, there's little the son can do regarding the policy since insurable interest need only be proved at issue.

Posted: Tue Jul 19, 2011 11:38 am Post Subject:

It would probably only be true in one of those Gerber-Baby-Life/Mutual of Omaha-Baby-Life/Globe Accident & Life-Baby-Life juvenile life insurance policies (some of which are fully paid-up after 20 years of premium payments), or in a mainstream policy if the original parent-owner was now deceased (but there is no mention of that in the original post).

If neither of those instances is true, then the father is probably still the owner and he's in control.

Posted: Tue Jul 19, 2011 01:36 pm Post Subject:

It would probably only be true in one of those Gerber-Baby-Life/Mutual of Omaha-Baby-Life/Globe Accident & Life-Baby-Life juvenile life insurance policies (some of which are fully paid-up after 20 years of premium payments), or in a mainstream policy if the original parent-owner was now deceased (but there is no mention of that in the original post).



This has been an option on a lot of the juvenile cases I written. You can choose either to relinquish ownership upon legal majority or retain ownership indefinitely (until death)

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