Would an insurance company issue a policy of an older person. He asked about getting a $50.000 policy for a young friend for his college education.....10 years away. Carl is in pretty good health and lives independently. What policy adds up to cash plus a death payoff?
Would a payout like that hurt any college scholarship financing the boy may be eligible for? About how much does coverage cost, do any veterans group offer a better price then civilian?
He will contact a broker, I am just trying to give him some rough ideas as what to be prepared for.
His family history predicts he will probably live to be close to 100.
Honey, he's not older, he's elderly.
Carl can bet that he's going to pay darned close to $15,000 a year for that insurance, maybe $20,000 - IF he's perfectly healthy. Maybe more. He's NOT going to get "good odds".
Yes, if the policy pays out, that money is now an asset of the beneficiary, so assets DO affect your financial aid. And no, you cannot get better rates as a veteran.
Most insurance companies flat out won't sell him a policy; it's probably going to be cheaper for him to flat out pay this kid's education, than it will be, to pay for insurance for 20 years - or even five. I would guess that the break-even point, is going to be LESS THAN three years, between what he's paying in, and what the policy would pay out.