LIFE INSURANCE POLICY - ON MY DAD
If you are someone's Dad - you probably have other things on your mind than thinking about getting a Life Insurance policy in your name. However, maybe having loving responsibilities as a Father means you should still consider looking at the peace of mind Life Insurance or Critical Illness will do to help protect a family.
Life Insurance & Insurable Interest
Insurable interest means - that you could be adversely affected financially if that person ( your Dad ) who is insured died.
The reasoning behind insurable interest is so that the death of an insured person may not create personal financial gain ( than loss ) for a policyholder.
Can I buy a Life Insurance Policy for my Dad ?
Yes, Possibly - UK Insurance rules state there must be an insurable interest between a father & another to arrange a life insurance policy eg; he looks after your 3 children whilst you work, so a material financial loss may occur if he died. He can always arrange a single policy for himself. Also both parties must consent to this arrangement.
Can I get a Life Insurance on my Father without him knowing ?
No - both parties must consent to this arrangement ie; you cannot just apply on his behalf without their knowledge.
Can I put my Dad on my Life Insurance Policy ?
As above - UK Insurance rules state there must be an insurable interest between yourself and your Dad to add him to your life insurance policy eg; a joint mortgage.
Can my Dad be my Life Insurance Beneficiary ?
Yes he can - if you wish to. Either your Father can own your life insurance plan directly; classed as life of another [ see comments above re Insurable interest ]. Note if he sadly died first as older, this can cause issues with the insurer having to undue this arrangement & may require additional legal costs by you seeking specialist advice. The alternative is to put the policy into trust where your Dad is either one of or the sole beneficiary.
Can my Dad be a Trustee on my Life Insurance Policy ?
Yes he can - if you wish to. If you put the policy into trust where your Father is either one of, or the sole beneficiary. Either he can be sole Trustee or have 2 Trustees ideally as he is older so sadly more likely to pass away sooner. Note again if this happens, this can cause issues with the insurer having to undue this arrangement & may require additional legal costs by you seeking specialist advice.
Can I get Life Insurance Policy for a Step Dad or Father in Law ?
Yes - But only as mentioned if there is still an insurable interest between you & your step dad or father in law eg; you perhaps have a joint mortgage or loan. Note that they could always arrange a policy for themselves. But they must consent to arranging the life insurance policy & with their full knowledge.
Being a sibling means you may not appreciate the legal implications for Insurance. Likewise the various challenges that may come looking after loved ones if they are critically ill or die; Let trying to get life insurance on a family member hopefully not be another great challenge. Either way please approach us for friendly Professional Help.
LIFE INSURANCE POLICY FOR YOUR FATHER - PRODUCTS REVIEW
MORTGAGE PROTECTION - for my Dad
Designed to cover a repayment mortgage on death or critical illness as it decreases during the plan term.
LIFE INSURANCE - for my Dad
Offering a family protection lump sum if the policy holder dies or is diagnosed with a terminal illness during the term or whole lifecover. Policies can be made joint or seperate.
FAMILY INCOME BENEFIT INSURANCE - for my Dad
CRITICAL ILLNESS INSURANCE - for my Dad
Helps ease financial worries if you are diagnosed with a critical illness as specified by the Insurance Company.
INCOME PROTECTION - for my Dad
Providing security by way of an income if your dad is off sick or have an accident.