Thursday, August 18, 2011

Do bad debts get deducted from life insurance premium's? ? Finances

My parents want me to take out life insurance policies on them so I won?t be burdened by funeral expenses and such. They both have a lot of debt and I was just wondering if this debt would be paid for by the life insurance premium.

*My parents aren?t legally married although they have been together for over 20 years, so as far as I know the debts wouldn?t be passed on to each other.

Thanks for your help!
Correction- not premiums.. Payouts? will their debts be deducted from the insurance payout.

Source: http://finances.solve-up.com/insurance/insurance-contract/do-bad-debts-get-deducted-from-life-insurance-premiums/

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