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Best Life Insurance for Parents
Your parents could save up to 70% on life insurance, regardless of their age or health.
Or speak to Coach B. personally at 1-800-342-1537
- updated last on March 26, 2023
Buying life insurance for your parents
Yes, it is possible, but take note of the following important information:
- You should first secure their consent. A signature from the person you want to be insured is an integral part of the application process.
- It is essential to acquire “proof of insurable interest.” It is a document that states how their death will negatively impact your life.
These important documents are very easy to get depending on your situation. However, it is a lot easier if you will ask your parents to apply instead.
Elders, most of the time, have a hard time dealing with online technology, so you can help them do the heavy stuff like getting quotes online, comparing rates, and filling out online forms for them.
Can you buy life insurance for your parents
The following are the best types of life insurance for parents, especially for aging parents. It is easier for you to estimate the monthly premium for each type of policy by simply clicking get a quote.
Should I get life insurance for my parents
As a child, you only want what is best for your parents, so knowing what the best life insurance for my parents is your number one priority. The most useful coverage for elders depends on different factors, such as health status, age, and how comprehensive the coverage is.
Key Highlights:
No medical exam Very affordable
$10,000 – $1,000,000
Professional Advice:
If you have parents that are 65 and under with average health condition, we suggest no medical exam term life insurance. Then it is possible to acquire a higher coverage amounts. Also, you can get it without the need to undergo any medical examination. Therefore, it is 2 to 5 times far more affordable compared to the final expense and guaranteed issue products.
Key Highlights:
No medical exam Very affordable
$2,000 – $100,000
Professional Advice:
Final Expense Insurance with no medical exam is what we recommend for ages 65 to 85. Also, it is cheaper than guaranteed issue with simpler health requirements.
Key Highlights:
Can’t be denied Quick Issue
$2,500 – $40,000
Professional Advice:
Guaranteed issue life insurance is what we recommeend if you have had or have serious health conditions or issues. It is the most expensive type of life insurance for parents but it may provide enough insurance for funeral expenses. You can’t be denied because of current health conditions.
Key Highlights:
Can’t be denied Cheapest
$50,000 – $500,000
Professional Advice:
If you need coverage, but buget is tight right now, accidental death life insurance is a must and you can qualify regardless of health conditions. Downside it only pays if you die from a accident
Talking about life insurance for parents opens many considerations related to financial stability, long-term care, and executors. Having a plan to get life insurance for parents is a crucial part of taking good care of your parents’ well-being. Also, getting coverage for them will help you realize their true needs, from their healthcare to final expenses.
Life insurance on a parent without their consent
If you are purchasing life insurance coverage for someone else, even your parent or anyone from the family, you should secure consent from them. One can choose from two easy ways to do it. First, ask your parents to acquire their life insurance policy. In case your parents choose to get their coverage, then there is no need to prove insurable interest. It is because they own the policy and are the insured. Afterward, your parents can list your name as beneficiary. Therefore, you will be the one to get the death benefit for final expenses.
The second option is for you to acquire the life insurance policy on behalf of your parents. Hence, it is only possible if you can secure their consent with a signature and prove insurable interest. It is the same as when we are kids. You’ll need the consent and approval of your parents. Once you get all the necessary documents, then you will be the owner of the policy and the one who is responsible for paying for the monthly premium.
Insurable Interest
One of the most important documents to secure is the insurable interest for buying life insurance for another person. This document is not hard to understand, and it is proof that one of your parents’ death will cause a great financial burden for you. Also, it is not a new requirement.
It is not hard to acquire proof of insurable interest from your parents. However, as the number of requirements increases, the number of coverage increases. Therefore, a smaller coverage of $50,000 death benefit will ask for lesser proof of insurable interest. On the other hand, coverage of $250,000 may require you more documents to submit for proof of insurable interest.
Moreover, it is good to remember that for insurable interest, the amount of the death benefit should be equal to the financial loss that you will experience after the death of your parents. Therefore, if your projected financial loss is only $25,000, then you cannot file for a larger policy, for instance, $250,000.
What Would Life Insurance For Older Parents Cost?
How to buy life insurance for your parents
The truth is that there are lots of reasons why you may want to purchase life insurance for your parents. It is essential to look into the goals of the policy before buying. Therefore, think about you ain objectives in buying a policy. These objectives will lead to finding out the best coverage amount and the type of policy.
In case your goal is to pay for the final expenses, then a final expense life insurance policy of $10,000 to $50,000 may be enough to cover these expenses. However, final expense life insurance for senior parents is not only paying for burial. There are other expenses to keep in mind, like medical and other debts. You may want to include other costs in your plan are hospice and hospital bills that Medicare may not cover. The best coverage should provide enough money that payoff leftover bills.
Furthermore, if your objectives go beyond final expenses, you may look for other life insurance for parents with other coverage types. For instance, if you will inherit your home from your parents after their death but still have a huge mortgage, a mortgage protection life insurance policy with larger death benefits may help you pay for the remaining mortgage.
Hence, it is very hard to predict what will happen in the future, so it is better to secure your home if it still on the mortgage. It is especially true if you still have a mortgage for your own home. There is a higher chance of losing these assets if you are unable to pay for the mortgage after your parents’ death.
How to Choose the Right Coverage Amount?
After knowing your objectives in getting life insurance for your parents, now is the right time to do the maths and estimate the policy amount.
You are the only one who can decide on the amount of policy as every family has a different financial situation. It is also important to consider the future as prices of funerals may go up by that time. Today, the current estimate for burial is $10,000 per individual. However, it is wise to go over the amount. Another consideration for the final estimation is the growing cost of hospitalization, medicines, and hospice care. In case higher coverage does not fit into your financial standing, you may choose burial life coverage of $10,000. Hence, it can provide a low-cost monthly premium. The only drawback of cheaper coverage is that you may face more expenses once all the death benefits have been used.
Another reason for higher coverage is to protect an inheritance from your parents. For instance, an ancestral home, then you may consider a higher death benefit.
Moreover, it is better to look at the bigger picture when estimating coverage like parents’ savings, current income, and debts. In case your parents have a huge amount of savings and a short amount of time to pay for the home mortgage, you may choose smaller death benefit coverage. When your parents paid off all mortgages before passing away, the beneficiaries may inherit a larger amount from the death benefit.
Choosing The Appropriate Life Insurance For Parents?
Experts will tell you that it is better to have a policy than none at all. However, not all policies can provide all the needs after a death of a loved one. When choosing life insurance for parents it is essential to find a policy that will fit their lifestyle and future needs.
Types of life insurance
Term Life Insurance for Parents
It is a type of coverage with a time limit, so it means that it is not designed to secure you for a lifetime. For parents, age is a huge factor in qualifying for it. Therefore, it is better to apply for this type if your parents are a bit younger. Typical term life insurance can offer specific time frames, such as 10, 15, 20, and 30 years. Also, most people who get it wants to cover a huge amount of debt within a definite time.
The best thing about this type of coverage is that it is the least expensive because it is shorter. The years depend on the age of the parent. A 65-year-old parent may only get ten years of security from most life insurance companies.
In case you’re main reasons for buying life insurance on your parents is to cover a mortgage for its remaining time. It is good to ask for the opinion of an experienced independent agent to make sure term is the right way to go.
Whole Life Insurance
As its name implies, whole life coverage can cover or offer security as long as the insured is alive. The beauty of this type of policy is that it has a fixed monthly premium for the policy’s entire life. However, keep in mind that whole life has a higher premium compared to term life. The reason behind this is because it will always pay for the death benefit, unlike term life.
Final Expense Insurance
It is a unique type of whole life policy offered to people who are 50 years old and above. Most providers can even provide policies for parents older than 80 years and up but expect higher rates as the age increases.
Furthermore, the final expense has a straightforward application process and without denial. A medical examination is not a requirement, but there are some questions about health during the underwriting process. Therefore, it is vital to be truthful in answering questions. Insurance providers will check the authenticity of the information from the Medical Insurance Bureau.
Universal Life Insurance
Universal life insurance is a type of permanent insurance policy with investment and additional flexibility to the premium if the cash value has sufficient funds. Since it has an investment, time is valuable for larger returns. If you have older parents, you may ask an independent agent if this type of policy suits your goals.
Group Life Insurance
Applicable for all ages and the applicant must answer some health inquiries to qualify. Also, the group may choose from term and whole life policy. This policy is matches organizations, associations, and trade companies to be offered to their employees or members.
Items that Affect Policy Ratings
Life insurance companies decide policy ratings. The greatest factor that can influence the rate is age, especially for parents. However, there are other factors to consider, but it varies from one provider to another. Also, some companies may require an applicant to do a medical exam.
Common rating factors are:
- Age
- Height and weight
- Gender
- Family Health history
- Marital status
- Drug abuse
- Alcohol usage
- Dangerous hobbies
All of these factors will help insurers to rate the risk level of your parents as insureds. Mostly, providers will give a rating class that will group applicants based on their health condition, age, family health history, etc.
The last option and the easiest way is the final expense coverage that does not require a medical examination. Another driving factor for the premium is the amount of death benefit that you wish to get.
The Sooner the Better for Affordable Rates
Rates of insurance policy may vary, but the common ground is the probability of the insured dying within the policy. Aside from health, age is the common reason for lower or higher rates. Death can come from diverse causes, but if health and others fail, it is the age that will end life.
The earliest you realize the need for life insurance, especially for parents, the better. It will make premium less expensive. Also, insurance providers view younger age as less risk to encounter death. As your parent gets older, the choices will decrease. For instance, with term life, age will determine the years of coverage.
Final Thoughts
Purchasing life insurance for anyone requires consent and documents to prove insurable interest is equal to the amount of death benefit you need. If you think buying life insurance for parents is useful for you in the future, you may choose from two ways to get it. One is to ask your parents to get their policy, and the other is to apply on their behalf. If you apply for them, you will be the policy owner and pay for its monthly premium.
What is life insurance for parents? It requires a deeper understanding of your future needs and goals. Therefore, it is crucial to talk to your parents about their debts, long term care, savings, and other important considerations.
Frequently Asked Questions
Can I purchase life insurance for my parents?
Yes, you can purchase life insurance for your parents if you have their consent and insurable interest. However, it's essential to consider the potential tax implications and ensure you're getting the right type and amount of coverage for their needs.
Can I get life insurance on my parents without them knowing?
Getting life insurance on someone without their knowledge or consent is not ethical or legal. To obtain life insurance on someone, someone must be aware and willing to participate in the process. It is essential to have open and honest communication with your parents about their wishes and plans for the future.
What else do I need to do to buy a life insurance policy for my parents?
Unfortunately, there needs to be a specific headline or answer provided for this question. Please provide a more specific keyword or query for me to assist you better.
About Coach B.
After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.
In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.
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