DEADBEAT 'Dad' and paying his Life Insurance Policy ?

[Mike Siegal]

I have a friend who's daughter was knocked up by Deadbeat (DB). She wants to buy life insurance on the creep with her Grand-daughter as beneficiary.

QUESTION; Since the DB has a history of petty crime, what would happen if DB was murdered --- would the insurance pay or not?

NOTE; I didn't say Dad was committing a crime (in that scenario), I'm just saying (because of his nefarious company),...anything could happen.

• THOUGHTS/comments?

Thanks for the input...!

 

[rousemark]

I have a friend who's daughter was knocked up by Deadbeat (DB). She wants to buy life insurance on the creep with her Grand-daughter as beneficiary.

QUESTION; Since the DB has a history of petty crime, what would happen if DB was murdered --- would the insurance pay or not?

NOTE; I didn't say Dad was committing a crime (in that scenario), I'm just saying (because of his nefarious company),...anything could happen.

• THOUGHTS/comments?

Thanks for the input...!

If the company issues the policy, assuming no fraud with application the company would pay. There is no exclusion on a life policy for criminal activity.if the plan had an AD rider, the accudental death would not pay if he died during t he commission of a felony.

 

[DHK]

There is no exclusion on a life policy for criminal activity.

5. The cause of death was excluded by the policy

Life insurance policies typically have a two-year exclusionary period for suicide, so your beneficiary typically would receive whatever you paid in premiums, but not the policy's face value. So-called "suicide clauses" vary by insurer and are designed to discourage people from buying life insurance when contemplating suicide.

Another caveat: If you're killed while committing a crime, the claim might be denied.

And last, if you don't disclose to your insurer when you apply for a policy that you have a high-risk hobby, such as sky-diving or auto racing, and you die while doing it, your insurer may decline the claim.

What are the reasons a life insurance policy won't pay out?

Life insurance claim denials usually occur because of errors with the policy or a policy lapse. Keep your policy updated and accurate to avoid a denied claim.

www.insurance.com

 

[rmhaire]

if the plan had an AD rider, the accudental death would not pay if he died during t he commission of a felony.

And sometimes alcohol. I've seen two accident policies that were contested.

Alcohol and car wrecks.

 

[WinoBlues]

Is the child a minor?
Why make her the beneficiary? Mom, would be the person responsible, in most cases, to raise the child.

Also, mom should be the owner.

 

[WinoBlues]

I have a friend who's daughter was knocked up by Deadbeat (DB). She wants to buy life insurance on the creep with her Grand-daughter as beneficiary.

BTW, I've done this several times. A simplified term plan would get this child grown. Definitely add WP & ADB rider. If not available a stand alone ADB would be cheap.

 

[Mike Siegal]

Is the child a minor?
Why make her the beneficiary? Mom, would be the person responsible, in most cases, to raise the child.

Also, mom should be the owner.

Yes ...The child is a 5 yr old.

GRANDMA doesn't trust her daughter judgment (and who can blame her) --- she wants the grand-daughter to be beneficiary.

BTW, I've done this several times. A simplified term plan would get this child grown. Definitely add WP & ADB rider. If not available a stand alone ADB would be cheap ?

Why would you add WP rider (I'm sure there's a premium for that) ?

 

[WinoBlues]

Yes ...The child is a 5 yr old.

GRANDMA doesn't trust her daughter judgment (and who can blame her) --- she wants the grand-daughter to be beneficiary.


Why would you add WP rider (I'm sure there's a premium for that) ?

Depending on the plan wp could pay the premium if DB were to become permanently disabled. It _could_ continue the policy for life. I had one where the thug boy was shot in the back by an 'unknown'. Paralyzed. Yes there is a premium but pretty low. Cost nothing to quote it.

Insurable interest could be an issue but grandma would be better as owner and bene then. Otherwise the mother could wind up controlling the DBs anyway.

 

[WinoBlues]

Why would you add WP rider (I'm sure there's a premium for that) ?

An example of WP on a higher risk. My three sons were in the military. As each one enlisted I took out term policies with WP. I checked with carriers about act of war and if the policies continued beyond the initial term date if under waiver.

So, say my oldest, USMC, came home from Iraq broken. The WP could keep him insured and maybe even convert under waiver. Where it could be difficult to impossible to insure him anyway.

My middle son is 80% and will probably be 100% service connected soon. That 30 yr term could be uber important for my granddaughter.

Some agents say price is king. I say value makes the difference.

WP may not be available to baby daddy if you have to go SI though.

Your friend is smart to want to protect her grandchild

 

[suranceman]

The insured (the deadbeat dad) will have to participate in the application process by answering the health questions and signing the app.

If he won't do that, there is no way to legally buy a policy on him.