Can you, as a parent, purchase life insurance for your adult child if they refuse? The answer is yes, but there are a few conditions.
You can initiate the contract on behalf of your adult child, but he or she must be fully aware and speak with an agent personally during the application process. In addition, they must fulfill any policy approval requirements, such as a medical exam or medical interview.
Nevertheless, as a parent, you can be the provider, recipient, and most importantly, the impetus for ensuring the financial security of your grandchildren.
As children grow older, it becomes their responsibility to purchase a life insurance policy. However, what occurs when these individuals choose not to purchase life insurance?
In a recent column, the Christian Science Monitor offers advice for parents who wish to purchase life insurance for an adult child.
Purchasing Life Insurance For A Third-Party
One reader considered purchasing a policy for her son. Despite having a seven-member family, the son refused to purchase a policy to protect their financial security. According to the report, such financial responsibility would fall to his parents in the event of his passing. The report continues that the reader may be able to purchase coverage for her son.
“If he’s not going to do it, you absolutely can take out a policy on him with you as the beneficiary,” the report says. “This is to protect yourself in that situation.”
But before you purchase a policy, you must have a lengthy discussion with your adult child about your plans. You should emphasize the significance of life insurance and the opportunities it can provide.
Frequently, lack of knowledge, not lack of funds, prevents people from purchasing life insurance. This is especially apparent among young people who feel invincible. And if a parent’s child is healthy, there is all the more reason to purchase coverage before an accident occurs or their health status changes.
Why Life Insurance Is a Smart Investment
It can be disastrous to lack life insurance if you have a large number of dependents.
If it is difficult to make ends meet and parents are willing to assist, speaking with a financial planner will help reveal the best available options.
In this situation, a term life insurance policy may be the best option for parents because it provides an affordable way to accumulate savings without the complications of an investment. A permanent life insurance policy may also include college tuition coverage.