I am facing a situation about which I understand very little, and I hope you all can advise me or tell me where to get the proper advice.
I am, along with several others, the beneficiary of a relative's life insurance policy. He has various policies with various beneficiaries.
The policy in which I am named was quite expensive to set up, so I've learned (involving many fees). Its premiums are also high. But its payout would be significant.
Unfortunately, my relative—older now, and retired—cannot keep up with any of his life insurance premiums. Not for the policy in which I am named or any other.
The beneficiaries of the policy in which I am named, and I, are considering taking over the payment of the premiums, to keep the policy active. This will be a significant outlay of money, but it would likely be worth it if in fact the policy eventually pays out to us.
However, I have never heard of beneficiaries doing this. Is this an established option, or is it very much outside the norm in the insurance world?
What potential pitfalls should we be aware of? I know, of course, that we should familiarize ourselves completely with the policy before paying into it.
One thing I am sure of is that this policy does not "age out"—it will remain active for as long as it is paid.
I feel that we should inform the other beneficiaries of other policies, legally, that the premiums are no longer being paid by my relative and that they, too, have the option of paying the premiums themselves. This would, it seems, avoid unpleasant surprises in the future. Do we need a specific type of lawyer to manage this communication?
Thanks for reading. I have many questions at this point!
I am, along with several others, the beneficiary of a relative's life insurance policy. He has various policies with various beneficiaries.
The policy in which I am named was quite expensive to set up, so I've learned (involving many fees). Its premiums are also high. But its payout would be significant.
Unfortunately, my relative—older now, and retired—cannot keep up with any of his life insurance premiums. Not for the policy in which I am named or any other.
The beneficiaries of the policy in which I am named, and I, are considering taking over the payment of the premiums, to keep the policy active. This will be a significant outlay of money, but it would likely be worth it if in fact the policy eventually pays out to us.
However, I have never heard of beneficiaries doing this. Is this an established option, or is it very much outside the norm in the insurance world?
What potential pitfalls should we be aware of? I know, of course, that we should familiarize ourselves completely with the policy before paying into it.
One thing I am sure of is that this policy does not "age out"—it will remain active for as long as it is paid.
I feel that we should inform the other beneficiaries of other policies, legally, that the premiums are no longer being paid by my relative and that they, too, have the option of paying the premiums themselves. This would, it seems, avoid unpleasant surprises in the future. Do we need a specific type of lawyer to manage this communication?
Thanks for reading. I have many questions at this point!