Landlord As Life Policyowner/Beneficiary

[SidecarDaddy]

Wondering if anyone is familiar with a product to fulfill the need of a landlord who has a residential tenant (up there in age) and would like a policy to cover the contingency of having to find a new tenant if the fellow passes away.

Initially thought this might be a credit life type policy but that may be relegated to a creditor/debtor relationship?

Of course the issue of insurable interest comes up. Rules here look (initially) somewhat murky (no surprise).
Appreciate any thoughts anyone in the field has had along these lines.

SCD

 

[dgoldenz]

Strange situation....unless the rental property is incredibly expensive, how long will it take this guy to find another tenant? If the guy renting is that old, is he even insurable? How much does he plan on spending on this? I would think it was pretty strange if a landlord wanted a policy on my life...and I'd also tell him to shove it.

 

[Fisher]

Part of being a landlord is dealing with tenants who break their leases. Pretty sure no one is going to define this as an 'insurable interest'. <eyeroll>

I'd say, "Oh, HELL no!"

 

[BNTRS]

what is this tenant paying for rent?

 

[dgoldenz]

Part of being a landlord is dealing with tenants who break their leases. Pretty sure no one is going to define this as an 'insurable interest'. <eyeroll>

I'd say, "Oh, HELL no!"

I could see it if this is some incredibly expensive property renting for $20k/month that would be hard to get anyone else into, but not for your average renter paying $500-2k/month.

 

[Fisher]

I could see it

I can't.

Doesn't mean the product doesn't exist somewhere but were I the tenant I'd not allow it.

 

[dgoldenz]

I can't.

Doesn't mean the product doesn't exist somewhere but were I the tenant I'd not allow it.

I wouldn't either seeing as the tenant isn't getting anything out of it. I was saying that's the only way I could see it making sense from the landlord's perspective.

 

[DHK]

The landlord would need to file a claim against the remaining estate - just as all other creditors would.

No need to list a landlord or any other company as a beneficiary.

This sounds more like STOLI... and I wouldn't have any part of it.

 

[WinoBlues]

The landlord would need to file a claim against the remaining estate - just as all other creditors would.

No need to list a landlord or any other company as a beneficiary.

This sounds more like STOLI... and I wouldn't have any part of it.

You beat me to it. Wondering if this landlord is named in the renter's will.

 

[Larry Tew]

I guess you could try to convine an underwriter that this is a Key-Man situation.