25 and found out I'm dying. What do I do about my debt?

[Psyentist]

Good day

I have had a financial plane ever since I started working. It basically involved me paying off my debt and saving then buying a house and a car etc.

I've just found out that I have cancer in my liver and I might only live another few months at most if I can't find a transplant donor.

My Questions are:

Is it illegal to take out life insurance if you know you are dying?

Who has the responsibility to take care of outstanding debts after my death?
(Is there something I can do now, that can prevent my parents from sitting with my bills?)

I won't be able to pay off all my debt with the next 6 months salaries, and I also don't think I will be able to work for much longer, I'm in and out of hospital.

What must I do? I am at wits end...

[snshijuptr]

I'm sorry at such a young age you are facing such decisions.

It is not illegal to take out life insurance, but you will find it almost impossible or prohibitively expensive to find a company to give you a policy.

Almost all of your debts will go away upon your death. Basically your estate, everything you currently own, will go to your debtors first. If there is anything leftover it will go to your family. Just avoid taking any joint ownership debt at this point (don't put anyone's name on your debt).

EDIT: Much of this depends on what state you live in.

[jla85]

life insurance through work

To expand on what the previous poster replied. It is not illegal but very unlikely as insurance is a risk based business and most companies will not take the risk once they know you have your current diagnosis. If your employer offers life insurance they typically do not have a health exam and you were covered from when you were first eligible to receive benefits from your company. Contact your benefits provider and up your coverage most often your employer will cover up to your annual salary in life insurance and anything above that will come out of your paycheck at pennies to the dollar. If your company has a life insurance plan for its employees this could be a viable option and since it is a group plan they don't do individual health exams and you just have to pay the extra out of pocket. I hope this helps and I will pray that god finds you a donor. God bless and good luck.

[Psyentist]

Thank you for the replies.
I have life insurance from my employer, that is an option I never actually though about. Will find out from our accountants tomorrow what the policy covers and for how much.

I just don't want to leave my parents having to pay my student loans and my medical bills. If the life insurance is enough to cover that I will be able to worry a bit less.

I don't really own any major assets yet, I have about 6000 in savings and my assets basically consist of 2 laptop computers. I owe the University 33000 and the hospitals about 24000, so if the insurance is a years salary, that should cover that and my parents will have something left over.

Thats a relief.

Thanks again.

[DebbieL]

I am so sorry for what you are facing at your young age. I truly hope that a donor will be found for you. All the best to you.

[disneysteve]

I just don't want to leave my parents having to pay my student loans and my medical bills.

Just to be clear, your parents are not responsible for your debts as long as the debts are in your name and not in any way joint with one of them. If you have a loan in your name and your father's name, for example, or if they co-signed for a loan, they'd be responsible, but if you took out the loan on your own, your parents won't be on the hook for that money.

Best wishes to you.

[skydivingchic]

One thing that hasn't been mentioned. If I recall correctly, life insurance goes directly to the beneficiaries and is not part of your estate. So if all the debt is in your name only and you have your parents designated as the beneficiaries of your life insurance, they won't have to pay any of your debts with the life insurance proceeds. Instead, your estate will be liquidated (your savings and possessions, etc) and that would be used to satisfy whatever portion of the debt it covers, the rest cannot be passed on to your parents. Check with an estate lawyer in your state to be sure. In the meantime, make sure you have your parents or whoever you want listed as beneficiary of the life insurance at work.

[NuggetBrain]

Your parents won't be on the hook for any of your debt unless you co-signed something with them. I am SO sorry that you're having to even worry about this at 25 - it might not be the most ethical thing, but I suggest that you dont't worry about your debt right now and focus on spending time with your family, and focus on your health.

[maat55]

It would be unethical/immoral to knowingly defraud an insurance company by not answering their questionaire honestly. If you do lie, they may find out and will not be liable for your benefit.

As mentioned many times, your debts are yours only and go away, unless you have a co-signer. This thread can serve as a reminder to anyone who has debts that have co-signers, to maintain enough term insurance to cover those debts.

I sincerely hope and pray you get a transplant, God bless you.

[ShawnaC123]

Are the student loans federal loans? I'm pretty sure they are cancelled upon your death.

[PMMM]

May God Bless you with a donor.

Pat

[lilro65]

Forget about any debt or money problems. Download the song "live like you were dying" Tim Mcgraw, if i found out i was dying, i would create a bucket list and do as much as i could just in case a donor is not found. GOD bless you and your family HOPE everything works out for you!

[Bluezy]

PMMM said it best. I hope you find a donor. We will be praying for you and your family during this time.

Use this time to concentrate on being with your family.

[chrisburke21]

I hope you find a donor! Everyone has given you good advice here.

[rob62521]

Hope you find a donor...may God give you hope and comfort.