ya'll know anything about "Senior Citizens" life insurance policies?

  • rnch

    Posts: 11524

    Feb 21, 2010 8:52 PM GMT
    i suspect that, due to falling house prices, stock market fluxuations and "loans" (yeh rite!) made to the other kids and her friends, when my seventy-something mother is gone there won't be much money left.

    my delicately phrased attempts to discuss this with her have been met with stoney silence or a deft change of converstaion topics. this has always been her way of getting out of embarassing situations.

    my father left her a comfortable financial existance when he passed away 14 years ago; but a lot has happened in the real world since then.

    even though i am her acknowledged estate executor and have signature approval on her financial accounts; she will not share any recent financial information/forms with me. this refusal also makes me suspect she doesn't have much left of the estate my father left her.

    the other kids will be of NO help as i am the only financially solvent child. i suspect mom has been "feeding them" with the estate money for quite some time now. she is not senile or stupid; just a "sof touch" when the other kids appeal to her for money.

    i have noticed ads on television and various websites for senior citizen life insurance politcies. they advertise "no medical exam needed" and "death benefits paid quickly".

    i'm wondering if this might be a way to ensure that there will be funds available to pay for the lavish funeral she has planned and for taking care of any estate debts left after her passing?

    any suggestions/opinions as of what to do here?
  • rnch

    Posts: 11524

    Feb 21, 2010 8:59 PM GMT
    lol @ the google insurance ads that popped up as soon as i started this thread! icon_lol.gificon_lol.gif
  • HndsmKansan

    Posts: 16311

    Feb 21, 2010 10:06 PM GMT
    I'd approach all with some skepticism. Nothing wrong with research, but you will find a "real" life insurance policy for an elderly person to be extremely expensive. They have to qualify and may be rated.

    If you are searching for a "burial policy" then consider those you mentioned, however they probably pay little, except to bury the person.... and read the fine print. I'm sure there are exceptions and the costs may still be adverse.

    Do your homework and approach it as if you were buying a car.
  • MSUBioNerd

    Posts: 1813

    Feb 21, 2010 11:58 PM GMT
    I would also suggest looking into what "estate debts" are actually your responsibility. My mother died when I was 22, and she had a relatively substantial medical debt from her last few months. My brother and I used her bank account to pay off what of the bills we could, and we sold her car to pay off some more of the bills, but we ran out of her money before we ran out of bills. I was advised that I wasn't legally responsible for the rest of the bills, and when the collection agencies started tracked me down every 3-6 months and tried to tell me that I was "morally responsible" for her debts, I repeated to them that we had used her bank account to pay what debts we could, but ran out of money before running out of bills, and wished them luck in collecting from a broke dead woman. After a couple of years, they stopped trying, and it's clear from my credit score that they weren't able to legally attach any of the debts to me.
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    Feb 22, 2010 12:07 AM GMT
    My mom's estate insurance premium is 30 grand a year. It builds some kind of equity. It will cover all the taxes on her estate. That's all I know.
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    Feb 22, 2010 12:26 AM GMT
    I work for the administror of the GM and Chrysler retiree medical and Rx benefits, but don't deal with the life insurance side. I receive calls all the time from the medicare enrollees who are beseiged by companies soliciting them to take on additional insurance policies. While I am not a licensed agent anymore (I was licensed for P&C), I have advised all of them to start with Medicare and ask about supplemental life policies. You can also check out end of life policies that are strictly for the payment of death benefits that go toward end of life debts so that Life Insurance poilicies don't get entirely sapped by the state. Since you said she has planned a very lavish funeral (have never understood this as no one will be in attendance of his or her own funeral), keep in mind that the average funeral cost today can be anywhere from $5000 to upwards of 10,000. It is a touchy, sometimes seen as morbid subject, but an end of life conversation is just as important as planning a wedding or a birth.
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    Feb 22, 2010 12:42 AM GMT
    If you have power of attorney, you can request all of the required statements and account information you want from your Mother's accountants, brokers and bankers without her express knowledge or permission.

    My Father "ran" my Grandmothers affairs for years based on a power of attorney, the fact he ran it into the ground is another topic ;)

    You mention real estate assets etc, I assume part of your motivation is WIFM after she is gone, if she owns multiple properties, the sale proceeds of these will cover even the most outlandish funeral, $100k?

    If your Mom has been generous with your siblings that may continue within her bequests to her heirs, or if true fairness is her goal for distributing wealth, what they have received to date may be subtracted from the their equal share of the estate. I have an Aunt and Uncle, who have advanced inheritance to all of their kids, but in different amounts. What is finally split at the end will be offset by what each has received to date.

    OR because you can feed yourself, you may get nothing! Good luck, I understand the struggle of secretive elderly parents when it comes to finances.
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    Feb 22, 2010 12:48 AM GMT
  • rnch

    Posts: 11524

    Feb 22, 2010 12:57 AM GMT
    RST: what is WIFM?

    no rental properties, just the house she and my father built in 1974, mortgage paid off before my father's death.

    at the time of his passing, he was not a millionaire; but more than enough diversified assets were there so my mother would be "comfortable" without having to work for the rest of her life.

    i have seen my mother's will. it is basically an even split for each child. nothing about payback of previous "loans". it is her desire that the other kids do not know the contents of her will while she is still alive.

    i also don't understand her funeral plans. my father's funeral plans (to me) were: "make it simple, make it cheap. no need spending money on me after i am gone". the other "kids" got quite upset with me when i enforced his wishes over what the over-wrought, guilt-filled funeral they wanted for him.
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    Feb 22, 2010 1:00 AM GMT
    Are you pretty sure she is not insured, especially if she is hiding the documents from you? Seek an attorney so you are able to get your access to them. When my grandma passed about 15 years ago, we all thought she had nothing. Then found $30,000 in small bills hidden all over her rented house.icon_rolleyes.gif
    Good luck bud.
    WIFM= What's In IT For Me, I think
  • rnch

    Posts: 11524

    Feb 22, 2010 1:05 AM GMT
    Luckydog76 saidAre you pretty sure she is not insured, especially if she is hiding the documents from you? Seek an attorney so you are able to get your access to them. When my grandma passed about 15 years ago, we all thought she had nothing. Then found $30,000 in small bills hidden all over her rented house.icon_rolleyes.gif
    Good luck bud.
    WIFM= What's In IT For Me, I think
    seek out an attorney and force financial disclosure, while she is alive and of sound mind? i don't see that happening.........icon_rolleyes.gif
  • rnch

    Posts: 11524

    Feb 22, 2010 1:07 AM GMT
    lololol...i suspect the other children knew the meaning of "WIFM" a longgggggg time ago.. icon_rolleyes.gif