Parents on Life insurance!?! Why!?!

Question

My husband got life insurance on himself for me for Christmas! Sweet right!?! Have you ever heard of someone making their parents part benficiary? They are 1/4 beneficiary. He and his father own a business and he claims its so his dad can retire but the business is worth far more than 1/4 of the policy. And.... Our house is in both my husbands name and his fathers so if my husband dies I only get half the house and have to pay his parents for the other half. We are in our mid 30's and have been together for 9 years and have been ttc for almost 4 with no luck. 
This bothers me. Not because of the money but because I should be his concern, not his already well off and financial independent parents. 
If we conceive I will request this policy be changed to me and our child and his parents be taken off but do I have a right to feel hurt and confused? Do I tell him my feelings about it now? 
My father died unexpectedly and I know the trauma it causes the SO. I never want to go through that so I, yes I , have been asking to get a policy.....Im just not sure how his parents got involved.

Answer

Hmm I think that is weird. My husband and I are each other's beneficiaries 100%. Then we listed our parents as secondary beneficiaries. None of that joint stuff.

Answer

It is strange to me.  We are not married and will not be getting married, but we have our affairs in order.  If one of us dies, the only benificiaries are the other and our soon to be born son.  We have a trust arrangement to secure the financial future of our children, with the trust being run by the surviving parent (or my brothers, who will take guardianship of my son).  Most of the money goes to the trust as it is better that way for tax reasons.

I think the priority should be securing the family you are responsible for over the one you came from.

Answer

If you haven't already, you should confirm how the house is held. If they hold it as "joint tenants" then the entire house actually (legally) goes to his dad, and none to you.

That said, it is common for joint business owners to have life insurance on each other/be beneficiaries.  How much is the policy for, and is it enough to help you supplement his income if he were to pass (assuming you are working yourself)? If it is, then don't worry about it.

Answer

His parents shouldn't be on the house or in his life insurance policy. Only as contingent beneficiaries in case something happens to you, like if you're both in a car accident. There are other ways to protect his business.

Answer

My husband and I just did this also. Since my husband is a doctor and has 400k in school debt  that I aquired  when we married, also our home and 2 vehicles, he made sure it was enough to cover all of our debt. And I'm 100% the beneficiary, since I will be the one left with the debt. I'm your case it's the business, your father in law will aquire 100% of the business so I'm Not sure why he would need money to cover your husband. He could sell if and make even more money that you would probably not share the profit...I would probably talk to your husband more about this.

Answer

I asked my husband to make a will out to dictate where the money goes but he won't. He left everything to me to decide who gets what. His parents like me now but that was not the case when we married. I can only imagine what would happen if he died. They would fight me on everything from money to where he would be buried. 
You need to sit down and show your husband the numbers of why you should be the only person getting the money (and once you have kids that can change) and why his father should no longer be on the deed for your house. He does not share the home with his parents, he shares it with you. Everything is in my husband's name (I don't work so it is his money that buys everything, I do not need claim to anything) but I just a stop to his parents being in out business when we first got married. Sounds like you need to do the same!

Answer

If you pay half the mortgage and bills on the house then you should be 100% beneficiary! If not then it's his folks right.

Answer

That would not go over well with me.

Parents on Life insurance!?! Why!?!

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