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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

Life insurance on parents
Assurity Life Insurance Company
Foresters
American General life insurance co
Mutual of Omaha
Nassue Re / Phoenix Life Insurance Company

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.

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What is the best types of life insurance for parents

As a child, you only want what is best for your parents, so knowing what the best life insurance for 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. 

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. 

No Medical Exam Term Life Insurance

#1 direct to consumer quote and apply platform

 

Final Expense Life Insurance

#1 direct to consumer quote and apply platform

 

Guaranateed Issue Life Insurance

#1 direct to consumer quote and apply platform

 

Accidental Death Insurance

#1 direct to consumer quote and apply platform

 

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.

Parent 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 Parents Cost?

Find The Best Life Insurance Policy For Your Parents: Risk Free

Why Purchase Life Insurance for 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

types of life insurance for parents

Term Life Insurance

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. 

Getting the best type of life insurance for parents 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. 

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