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Ask Dave

Smoking And Insurance

Dave sees three problems in why it'll be difficult for Kathy to take out insurance on her heavy smoker siblings.

QUESTION: Kathy has a younger sister and brother who are both heavy smokers and in their 40s. Neither sibling has any money. Should she take out some insurance policy to cover funeral expenses?

ANSWER: There are three problems. One, you need the siblings’ permissions and signatures. The second is I don’t know if you have an insurable interest in them. The biggest factor is that it will be very expensive insurance. They are smokers, and that doubles or triples the rates.

You might price it and ask if they are willing to sign on it, but the pricing may give you a heart attack! I would think about self-insuring through this. Find out the cost and minimum purchase and find out from that if you want to self-insure or go for a policy.