Real Answers for Life’s Money Challenges
My younger brother is very irresponsible.
He has a job with benefits, and he lives only for today.
I believe his parasite girlfriend is his beneficiary for the life insurance from his job.
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I would list myself, then my daughter, as the beneficiaries.
What do you think?
K.
Dear K.,
It doesnt matter what I think here.
What matters is what your brother thinks and whether hes OK with your plan.
First things first, though: You typically cant purchase disability insurance on behalf of someone else.
Perhaps you could offer to pay the premiums if your brother buys disability coverage.
Since he has a job with benefits, its also possible that he has disability coverage through his employer.
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Life insurance is a bit more complicated.
You also need to have whats known as an insurable interest on their life.
That means you’re gonna wanna show that youd suffer financially if your brother died.
Typically, these policies have a death benefit of $25,000 or less.
No Interest Til Almost 2027?
You obviously dont agree with your brothers life decisions or his choice of a romantic partner.
But it doesnt sound like you need insurance to protect yourself against them.
That includes any medical expenses he might accrue at the end of his life.
Think about what youd do if your brother died tomorrow.
Would you want to have a traditional funeral and burial?
Or would you be OK with a simple cremation and a memorial service?
The premiums are relatively expensive for a small amount of coverage.
A $10,000 policy for a 60-year-old man in good health costs about $50 a month on average.
Try not to focus on his lack of planning for the future or his parasite girlfriend.
Maybe you could fib a bit and say youre evaluating your own life insurance coverage.
You could then ask him if hes done any disability or estate planning of his own.
Watching a loved one make decisions you disagree with can be difficult.
But it doesnt sound like your brothers life choices have a major impact on you.
I dont think this is a situation where it’s crucial that you shell out money for insurance.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected].
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
