My dad wants me to pay for his life insurance policy

Dear Dave,

I talked to my dad the other day, and he wants me to pay for his life insurance policy. He says I should look at it as an investment, and he doesn’t want to pay for it himself anymore, since he’ll never get any benefit from the policy. My dad is 65 and in pretty good health. I’m 24 and not sure how I feel about his request. Can you give me some advice on handling the situation?

Frankie

Frankie,

This is really weird. I’m sure it was doubly weird for you to hear it from your dad! Even if you didn’t say it out loud, you had to have asked yourself, “Say what?”

I’d take a hard pass on this one. Do you get what I’m saying? The answer to this question is no. Plain and simple. If your dad is in good health, you could be paying on this thing for another 20 or 30 years. That’s ridiculous! Plus, it sounds like someone needs to explain the purpose of life insurance to him. The proceeds from a life insurance policy are there to protect the ones you leave behind when you die — your family — so they can cover the bills and be financially stable without your income. Life insurance is not an investment.

Now, I know he’s your dad. That makes the situation a little touchy. But if I were you, I would sit down with him and respectfully let him know I have no intention of “investing” in his death. You’re 24. And in my mind, that means you have other kinds of investing you should be looking into — like retirement planning.

If you’re anything like me, you’re fighting the impulse to be a little snarky about this whole thing. But this is your dad. A little respect is in order. Besides, being snarky isn’t going to solve anything, even if it does make you feel better for a minute.

Something tells me your dad does crazy things like this from time to time. He’s little quirky, maybe. But deep down, he knows this is a strange request. My advice? Don’t go into a lengthy discussion about it. Just smile, thank him for the offer and let him know you’re going another route with your investments. Two sentences and a kind, but firm, no.

Good luck, Frankie!

— Dave

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