My parents concern is

I’m looking for advice because I couldn’t find a clear answer online. I thought people here might know more.

My sister recently asked our dad if she could take out a life insurance policy on him. He said no because he believes that if she does, it could cancel out our mom’s policy on him through her work.

He thinks if my sister takes out a $20,000 policy, it would override and cancel our mom’s $30,000 policy.

Any information on how this actually works would be really helpful. We live in Ohio.

6 Likes

That doesn’t make sense. There’s no reason for it to cancel out. The total coverage would just be $50,000, but that amount might be too low for your needs anyway.

6 Likes

It doesn’t work that way. One policy doesn’t cancel another unless it’s a replacement policy. You can have individual insurance alongside a group policy, and it’s a good idea to do so.

5 Likes

Why do your elderly parents need life insurance at all?

4 Likes

Funerals… over $12K on a ground funeral; about $3K a cremation with no viewing.

4 Likes

So then they would only need about $15k? I’d recommend just self-insuring that and split it with their family, unless they definitely won’t be able to come up with $15k.

3 Likes

He might have seen something in your mom’s work insurance documents stating that dual coverage isn’t allowed. However, that typically means dual coverage under their own plan—like if both parents worked there and he had employee insurance, she couldn’t also have spouse insurance on him under the same policy.

But no, as others have mentioned, your sister’s policy wouldn’t affect your mother’s policy.

2 Likes

But why is the sister wanting a policy on her dad? Who’ll be the beneficiary??

1 Like

She wants to be the sole beneficiary

1 Like

Like an inheritance???

1 Like

Yes. I think that is her intent. I’m less concerned with my sister since my dad denied her request.

I’m more interested in providing accurate information for my father to make informed decisions going forward.