My wife and I (both working, but I'm the main source of income) recently had our first child. In talking with my parents about the beneficiaries for the whole life insurance policy they purchased for me when I was a child, they mentioned that they are using it as collateral for a loan related to their family business. I asked about officially changing the beneficiaries to my wife and daughter, and they instead assured me they would forward the money in the event of my death. If they continue to have the loan, would they even be able to do that? I've read that the lending institution becomes the beneficiary in such arrangements. Also, would that prevent me from taking over the policy in the future? Are there other important implications here as it relates to my wife and daughter being taken care of? Also, AITA for being mad that they're using this "gift" in a way that undermines (as I understand it) the main point of life insurance?
Submitted March 01, 2019 at 10:41AM by Chaotic_Good64 https://ift.tt/2tHJ4nc
