I知 dying to learn about adverse selection and credit life insurance

[00Torsten]

Hi everyone,
I壇 like the hive perspective on my family痴 best strategy for the situation I find myself in. I have been diagnosed with an untreatable disease that leaves me nine months or so to live. I have excellent credit, some brokerage, retirement, and other tax advantaged accounts, greater than median family net worth, but my partner and I are both medically disabled and unemployable.

It痴 too late for me to qualify for traditional life insurance. I知 feeling pretty desperate and don稚 know what I can do to provide for my family.

We have an old truck that I壇 like to replace. I致e heard about guaranteed issue credit life insurance to cover auto loans, but I知 not sure where to find this product.

Are there any strategies I should pursue, or is it time to update my GoFundMe page?

[GilesMM]

Welcome to the forum and sorry to hear your news.  You would need to call around to car dealers in your area to see which ones offer the insurance as it is normally part of the finance process. The cost is rolled into the payment scheme.  While legal to get the insurance, I'm not sure it is ethical in your situation.

[slappy]

This is found through the auto finance program. I used to work at a credit union and they always offered the death/disability insurance on the loan. Maybe call your local credit union and ask them about the loan process and if they off that type of insurance. I'm sure they have a pamphlet they can share with you.

Other than that, maybe post a case study and see what guidance we can give there?

[Duke03]

Not sure if you are on Reddit but that's the place to ask this type of question.  Look up the sub forum Unethical life pro tips... Sorry about your situation and I hope you learn more than one way to help your family.

[Paul der Krake]

Fraud is bad.

There will almost certainly be a screening questionnaire, waiting period, or a clause that one way or another will be used to deny your claim, and for good reason. Best case scenario it eventually gets paid out but with a lot of effort from your surviving partner.

Is this really how you want to spend your remaining days?

[TimCFJ40]

This is sad news, and I imagine hard to figure next steps.  Prayers for you and your family  As stated above, you might try a case study of your overall financial state and future needs of your partner.  It sounds like your assets should cover a reasonable vehicle purchase for your partner before your passing if that is what you're trying to do. 

I'd set your affairs in order, clear your mind of it, and then enjoy every day as much as you can.  Many people have outlived their prognoses by years or even decades, so embrace the time you have and Godspeed!

[slappy]

Fraud is bad.

There will almost certainly be a screening questionnaire, waiting period, or a clause that one way or another will be used to deny your claim, and for good reason. Best case scenario it eventually gets paid out but with a lot of effort from your surviving partner.

Is this really how you want to spend your remaining days?

I'm not sure this is case with this type of insurance. When I worked at a credit union, it was added to the loan and I was never aware of any type of screening. It is a bit expensive for what it is, but that's to be expected if they aren't do any type of screening.

[Dr. Pepper]

This seems like a scam, if your actually a real person with this problem, I'm sorry for you. That said don't let your legacy be that of a scammer. If you don't think an insurance company is going to carefully investigate a person who dies less then a year after getting a policy, prior to paying out any claims your crazy.

My guess is this is really a meta game question from a journalist, who is trying to fish for people who would encourage or condone this type of behavior, and would be using the response in an article, but I could be wrong.

[reeshau]

If you are getting this from the dealer, I think there is a high probability of agency risk.  The dealer tries to do what they can to get you signed up, and earn their commission.  Later, when your partner files the claim, the insurance company goes over all the details with a fone-toothed comb, and either denies the claim for some deficiency in the application that is irreversible (e.g. a doctor's note) or makes the process so onerous as to not be "worth it."  Also, if paid off, there may be conditions about not selling the vehicle for some time, so as to collect the equity in it.

Personally, I would not do it anyway.  You give a lot of facts that you are well off, but want to try and take advantage of a financial mechanism.  At the very least, though, it's your partner who may be stuck with an expensive truck they have to pay off.  Is it something they want, or something you want?  If it's just for you, consider a 1 year lease.