Viability of Life Assurance Idea

edster71

I've had an idea, but I aren't sure whether it's really viable.

I'm currently trying to get myself back into a career, and am aware
that it's going to take me quite a while to get to a point where I'm
earning a decent salary.

To cut to the chase, I am wondering about the possibility of assuring
our mother's life - naming myself as benefactor.

This might sound rather mercenary, but allow me to explain.
As it stands, my brother and I stand to inherit the house in question -
and in all likelihood, it will be sold and the money stemming from the sale divided.
However, I am very attached to the property in question, and
would far rather see it remain in the family!

With that in mind, and recognising the fact that I won't be in a position to find a mortgage for some time, I was looking at this as a
potential option - ie using the monies from life assurance to cover
half the value of said property...

Does this sound like a viable idea?

I have looked at some assurance companies, and I suspect that the
max. age for cover is 85. Our lovely Mum is 71.
So I suspect that I'll come unstuck if she lives beyond 85.. which is
quite likely .. Our Grandfather made it past 100!

Sorry if this sounds a bit clinical. I can assure you we are a
very close family!

stephenni1971

I've had an idea,

,,, and it's a stupid one.

I am wondering about the possibility of assuring
our mother's life

You can take life insurance on someone if you have an 'insurable interest' - in laymans terms that is if you stand to make a financial loss from the death of the insured.

If your mother died you would be gaining half of the house - not losing anything.

That said SHE is perfectly entitled to take out a policy on her own life, and name you as benefactor.

However, even if she is in excellent health, getting cover of any meaningful level will be prohibitively expensive - with no guarantee of a payout if she lives beyond the terms of the policy ( for level term cover)

You would be better looking at whole of life policies but again the costs would be huge.