I’ll just ask: is it in the realm of possibillity that a cruel parent takes out a plan on the kid in the hopes they can make the kid so miserable and terified that if the live they get child support but if the kid kills themself they get a pile of money for the trouble?
I need to know what it could mean. This is Canada. Thank you, its ok im out now but in my personal work, this tidbit has surfaced.
Be gentle please
Sometimes people get life insurance on their kids just in case their kid dies. It’s usually pretty cheap (like less than $100 a year) and would pay for the funeral expenses (which is about $8000 these days).
To add to this: sometimes it’s simply an add-on to an employer-offered plan, and simply a result of that sort of enrollment. Employers like Home Depot, Target, and Best Buy fall into this category.
Edit: even if that employee hates that person, that, person can easily. Become the beneficiary of a large employee policy just because the signatory happened to know the information relevant to the heir when they happened to die.
Def not this aha. Thanks tho
This is the answer.
We could speculate all day, but it does you no good.
I have a life insurance policy on my child because it’s dirt cheap. Hopefully I never have to use it, but it’s about enough to cover funeral expenses and that’s it. No one is getting rich off of it.
This is the same as me. I also have a policy on both my kids. It’s $10k and it’s so I don’t have to worry about funeral costs.
There are also plans like that and turn into a college fund but it’s probably just better to use a 529 for that.
But ultimately, in my opinion, it’s better to have a one on the bread winner of the family. But some people feel they are never necessary.
If you die young you don’t need insurance because your spouse is still hot and can re-marry easily. If you die older your children are out of college and can take care of themselves.
Everyone take or don’t take insurance policies for their own reasons and it’s hard to know exactly why unless they make it plainly obvious.
It’s in the realm of possibility, but it is extremely unlikely. Like, extremely, outrageously unlikely. 
The real question here is: why? do you suspect this is happening? While I cannot speak to your circumstance, it’s much more likely there is some other more rational explanation for what is going on.
I thought suicides automatically disqualified life insurance claims?
Depends on location. Sometimes you just have to wait a couple years so you can’t just sign up and check out.
It depends. It makes it a lot harder to claim but not out of the question.
Not always
… and maybe that’s why it was “previously active”?
Maybe not for under age… IDK…
I could be wrong, but I believe one of the requirements for life insurance payments is that it was not suicide.
I think most suicide clauses have an expiration on them like, if you get the policy and kill yourself within 3 years it’s not covered but outside of that it is covered.
One would hope but nobody ever said life was fair. I was fortunate she knew she couldn’t directly murder us or the child support cheques would stop flowing but I felt like she was definitely caveating or hedging her bets. $10k in hand is better than in the bush
Depends on what the life insures covers. Where I live, life insurance for children cover medical costs for illness and accidents short term but also a certain monthly payout of a very long time to aid a disabled child, later a disabled grownup.
I have life insurance on both my kids - pretty much like the rest of you it’s small and meant as funeral cost coverage. The side benefit is that it’s whole life, so when they get old enough for me to sign it over to them, there’s some cash value they can have instead if they want.
Removed by mod
Ya but she probably viewed child support that way. HER “income”, basically wife support even though its not alimony and she used it basically all on herself, even when not providing housing and everything else
