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My dad is 58 spinal cord injury. Says he has a small life insurance policy $5000. The other one he did have he took loan out against it then didn't pay it back and they dropped him. Anyhow he smokes and is disabled. He has this bad thing on his nose. He told me you better get life insurance on me before they tell me its cancer and its in my medical record. He got life insurance on his mom before she passed of stage 4 ovarian cancer last year. He used some for her funeral and the rest to pay things. Anyhow i was wondering if its just wrong to take life insurance out on my dad - or smart? thoughts?
Thanks!

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IMHO, insurance is legalized gambling.
But it is a good idea, depending on one's situation.

Insurance companies bet clients will pay into policies long enuf for them to profit enough to make payouts painless to the company.
ALSO, there are scads of rip-off insurers--fly-by-night business that claim to have been around for a hundred years, playing on people's trust. They take your money and run.

That said...
There are numerous levels of insurance.
Like: Whole life, Universal Life,Term, Catastrophic, etc.

WHOLE / Universal LIFE policies build a fund, have fixed monthly cost, require a physical/medical records; is very UNlikely to get contracted for a sick person.
It has to be funded fully [paid into long enough], before it will pay out the value of the policy--if it is not funded fully, the heirs do NOT get the full value of the policy.
If there is enough money in the fund, one can borrow from it, usually at lower rates than usual loans--but this is a trap--hte rates usually jack up--you DO pay interest on those loans, too.

TERM: the monthly fee is paid to the company monthly, the monthly fee goes up faster than with Whole life [or Universal] and does not build any fund one can borrow on, for instance. It will pay out the policy value, even if one has only been paying on it briefly, or, there might be a rule requiring paying into it for a certain number of months/years before one can get paid the value of it.

If you just seek is a policy that pays enuf to afford funerary expenses, those run cheap, and usually have no physical or medical record requirements--though some DO.
So seek those that have no requirements!
These policies usually only go to about $10,000; they are betting you will pay into them long enuf for the company to profit, not lose.

IF you cannot find insurance for end-of-life expenses, you might want to check your State for what there is for "Catastrophic insurance coverage".
I think that only pays on medical bills, though, and not on funeral expenses.

ALWAYS beware of the blitz of insurers willing to sell you cheap policies for funeral expenses.
READ the fine print.
CHECK with the State insurance commissioner to see what they have on their radar for policies for persons in your elder's condition.
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My dad told me to get life insurance on him. He won't quite smoking b/c he doesn't want to admit to the doctor he smokes to get patches. He doesn't want to sign up for the free quit smoking program b/c then its on record he smokes and they have his info. He's 58 and i can't MAKE him do a thing. He does what he wants. He has full mental abilities.The only reason i would think about taking it out on him is b/c he has no money/saving for when he passes. My dad looks at it as a money making deal as he has done it with his parents. I agree with disclosing things which is why i haven't taken this up before now- he's told me to do this for awhile. When i ask him about the smoking he says just tell them i quit. He has to go get the spot on his nose looked at. I'm all for going in and getting it taken care of. I've had things taken off my face no cancer but needed to be done. He won't let me go with him to appointments. He says so he doesn't mess up my work schedule. I've told him time and time again i can take time off. My work is understanding. I think its b/c he doesn't want me to tell the doctor he lies about things. He has a case worker and he lies to her as well. He has done this his whole life. He lies to suit his purpose. It all makes sense to him. Doesn't want someone telling him what to do. I do take my money and put it in a 401K and have my own life insurance so others don't have to figure it out if i die. Also my dad has not taken care of me my whole life. I helped my mom financially and emotionally raise my youngest brother (11 years difference) from 19 until 28. I have helped my father even though he didn't give a dime unless he was forced too b/c i have tried to move past hurts to have a relationship with him. My father has nothing in order except trying to fool every system. he is on medicaid/medicare. He has been disabled for 13 years. I was just hoping to get perspective for when i talk with him. thanks everyone.
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Assuming (which is bad) , That he is in pretty bad shape 'conventional life insurance is NOT an option" PERIOD and done.
Speaking as a licensed agent:

We are likely looking at "Final; Expense" plans which are simplified issue
They are of several types:1 Pay Premium& get immediate Death Benefit (DB)
or
2. a Graded policy: Pay premium and get a % in first year, a larger % in second year; and then after one or two years, (Often two) get the full DB.

3. Another Is pay premium, and if Death occurs in 1 or 2 years, get all $$ paid in plus an additional 10%...

All of those beat the return on a CD which is likely under 1%

Now If there is any $$, and it looks like MEDICAID as in Nursing home is coming: A Funeral Trust is in order, as There is no Medicaid look back on that, and the funds can't be attached by creditors: Hospitals, Nursing Home, Dr. Credit cards, someone else lawyer.

And oh by the way it is generally good practice to have policies on those whom you have insurable interests.
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The responsible thing would have been for Dad to maintain the policy he borrowed against, or to use some of the windfall from his mother's life insurance to pre-pay for his own funeral etc.

But now that he no longer has enough insurance to pay final expenses, he seems to be saying, "Hey, you can take out a life insurance policy on me, pay the premiums, and maybe even earn yourself a nice windfall, depending on when I die. I'm not going to ensure there are funds for my final expenses, but you can, and maybe wind up with a profit (or maybe not, of course)"

It may not be "wrong" (if the application is strictly honest) but I find it creepy to pass final expenses on to a daughter, and make it sound like a good gamble.
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I would take him to have the thing on his nose removed asap, I did it with my Mom and it was done in the office. Melanoma goes to the brain so get it off asap please before it grows to a baseball and disfigures his face and its too late to remove it. I've seen that happen on a person at the daycare, it was horrible!
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That is what it is for. I say if you qualify, that would be the smart thing to do to cover expenses.... Everything is so high anymore. Do what you can to protect the family, esp since he is the one suggesting it!
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perhaps he has this already in play.
and it should be up to him instead of getting one out on Him.
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You will have to be honest when getting the insurance and most insurance companies will ask about age, health (and require a medical exam), and about smoking or if there is something you might need to have seen. Lying about any of this can cause you to get put in prison for insurance fraud. If he got insurance on his mother and she had ovarian cancer, he too could be arrested and imprisoned for insurance fraud. Be very truthful. You might want to consider something like the Colonial Penn life insurance program where they don't ask medical questions. On the other hand, you would only get your premiums back if he died within 2 years but Colonial Penn offers guaranteed acceptance and they are a reliable company.
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Another use for a life insurance policy would also be to convert it into a Long term Care Benefit Plan that could be used to help pay for his care in the future if you decided to not keep it in-force to collect the death benefit. More people are taking this option to pay for care instead of lapsing or surrendering a life insurance policy. It keeps you private pay longer and delays the need to go onto Medicaid and straight into a nursing home.
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I am with Tony's answer. First of all term would be the only way to go in this situation. You may want to see what Colonial Penn have to offer. The amount of coverage is limited but at least it is attainable. Once you find out the cost, you may want to invest the money into an annuity instead. This is like a savings account but the benefits would be paid to you should your father pass away. This way the money would accumulate tax differed vs. just putting the money into a savings account and paying taxes on the accumulation every year. I would suggest staying away from any whole life, or universal life because the policy expenses are very high especially in your situation. Good Luck!!!
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It's certainly not wrong but just a note, if your father ever needs to go on medicaid to cover health costs, they make you cash in any insurance that has any cash value. In my mother's case, we assigned her $10,000 policy over to the funeral home rather than have to cash it in for $3,000. If it doesn't have cash value, they may make you repay them when your father dies.
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I guess that I would try the same company that covered an elderly woman with ovarian cancer. I am interested in hearing what you find out, because I have never heard of this.
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About the thing on his nose -- most of these things are not lethal. What does it looks like? Noses are famous for getting cancers that don't spread except locally on the skin. They are more defacing than dangerous. The sooner they are removed, the easier it is. There are several benign things it might be. A dermatologist will be able to tell you. Does you father have healthcare insurance? If so, visit your dermatologist as soon as you can so you can stop worrying about that thing on his nose.
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It is absolutely not wrong. We had life insurance on both my Dad and Mom and paid many years against it only to not get a penny once they passed. My Dad passed at 81 and Mom at 84. Besides, your Dad is telling you to get it, I think as many said it is responsible and not wrong. Also, not to sound gloom, but once they leave us there are always unexpected costs that we need to take care of.
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It's absolutely not wrong. Finances are a large part of caregiving. You have to find out if it's possible though to take out a life insurance policy given his medical condition. He will have to have a medical exam. They will draw blood so nicotine will show up. He might be able to get insurance, but you have to weigh the monthly cost. You should certainly investigate it and find out what is available. There is nothing wrong with having a life insurance policy for your Dad. We take out a policy for our spouses or partners. It's actually being fiscally responsible. Start calling agents and see what they say.
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How old is his daughter?is she married also? I just think since the way it looks he may already have things in order if she does not want to do this for him.
I work in a field where ppl capitalize on alot of it..and its morally wrong when someone is dying. that is where I am saying cannot agree with everyone.
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Francis, I think the point her father was trying to make, was that he feels that he if he is diagnosed with cancer, there will be no chance for and insurance policy. The money would be to help cover anything and also as an investment for her. Morbid as it sounds, parents buy life insurance for their loved ones as part of their estate. How many people NEED a million dollar life insurance policy to bury someone. He's just letting her know that if she wants to do it herself, he's ok with it. If he thinks he's short for this world, she could captialize on it. There is nothing morally wrong with it. The benefit to him is that he will be comforted by the fact that his daughter may be a little better off financially. As I mentioned earlier, insurance companies are just businesses offering a product for sale. She really needs to do her homework.
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You may have to do for him as he has done for you all his life.
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Why would You get a life insurance poicy on your dad..to Gain Money?
doesn't he have money for burial and things that he has had? I think if HE CHOSE
to do so..but, You just getting one I don't see that it Benefits HIM at All.
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It's not wrong but considering your father's health history it would be a major challenge getting a company to approve his policy.

After all, you mentioned he has a spinal cord injury, smokes and is disabled.

Plus, if you do not disclose the "bad thing" on his nose it may give the company legal recourse to deny the policy or a future claim because you lied on the application.

As a former life insurance agent, the best thing you could do is look for one of those policies which doesn't require a medical exam. The premium is more expensive, but you are guaranteed coverage.

Or, take Ferris 1's advice and put the premium money into an account that will be used for final expenses.
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There are two main types of life insurance. The "universal" life ins. is a policy whose premium doesn't go up, but is costly per month. A "term" policy keeps going up as one ages. Having all his health problems will throw him into the "most likely to die soon" category, and insurance companies will ask you to pay handsomely! Insurance companies do not want to pay out, so just make sure you read all the fine print about "exclusions" the policy has. One exclusion criteria typical of all insurance companies is "end stage renal failure". How about putting your "premium" money into a interest-bearing CD or money-market fund (since you already have employment)? Start saving money now, and try to get your dad to stop smoking. It is the worst habit (addiction) one can have on your body. He will start to feel better if he stops. Best wishes.
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I thought you had to 'qualify' for life insurance and if you are in very poor health that you wouldn't be able to get it. But I don't know, I've never had it...
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Thanks everyone!! He takes life insurance out his family members as a money-making deal in the past. He did last year on his mom who died from overian cancer now he wished he'd taken more out. I carry my own life insurance - private one and one through work. I'll look and see if i can find a term lower cost. See if its worth it. I have a feeling he'll live a lot longer then its worth to get it. I do appriciate bounching it around here. I've always thought when he did it how twisted it was to do.
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Smilebeth, your question made me smile. It reminded me of my dad trying to talk me into getting a life insurance on him - he too had a myriad of things wrong. He saw it as a money-making deal though -- the way he made money investments all his life. I was horrified that I would be betting on my dad's longitude and turned him down. And it turned out he lived longer than we thought so it wouldn't have been a good bet. But it tickles me that he wanted to beat death in his own way to my advantage.
Good luck and -- Buy the insurance if you find a good deal but be aware that it is amazing how long our old folks can hang on.
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It would be responsible, not wrong.
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Insurance companies are businesses and only out there to make money. For the right amount of money, they will insure anyone. Shop around, you may end up paying more than its worth. Also, if you buy it for him, in his name, it may have a negative impact if he is on medicade.
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I don't think its wrong. When a loved one dies having the finances to take care of arrangements that have to be made makes it easier to deal with. It lets you focus on your loved one and not on how you're going to find the money to lay them to rest. I have insurance on myself so that my family doesn't have to go thru that. Also if your dad said to get life insurance then do what he says.
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I don't feel its wrong thats why its there, to help you when they pass there is a lot of expense in funerals, also if his financial situation is bad it will help you cover that and straighten it out so its not passed to you! We know you love your father and his best interest is at heart just by the question you asked!! Good Luck To You
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