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Why would a 70 year old take a life insurance policy out on a 10 year old?
I work for a financial institution and see that a client pays on a $250,000 life insurance policy on a 10 year old granddaughter - the grandmother is the beneficiary which means if the daughter dies she collects $250,000. She took it out 2 years ago, so the granddaughter is now 12 and she is 72 years old. The granddaughter should be healthy otherwise wouldn't qualify to be insured so not like she has a disease she is dying from. Does this make sense?