Life Insurance for My Parents
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Can I Purchase Life Insurance on My Parents?
Your first question might be whether or not you can actually purchase life insurance for parents. The answer is yes. In fact, people do it all the time. If your parents want to pay their own premiums, you can help them with the process of shopping for whole life insurance and can help them get set up. If your parents aren’t able to make their own payments or if you just want to help them out and remove the financial burden as much as possible, you can take out the whole life insurance policy yourself and pay the premiums every month. When taking out life insurance, however, it is important to know that you will need to get your aging parents involved. Luckily, you can do a lot of the legwork for them so that all they have to worry about is signing the paperwork. This can help make the entire process much easier for everyone who is involved and can help you ensure that your loved ones end up being covered.
Reasons People Purchase Life Insurance on Their Parents
There are so many reasons why people take out insurance for parents. These are some of the reasons why this might be something that you’ll need to think about doing yourself:
- You Have an Insurable Interest: Many adult children take out insurance for their parents because they have an insurable interest. Basically, this means that you will be financially impacted when parents pass away. For example, you might be concerned that you aren’t going to have enough money to pay off your parents’ house when it’s left to you after they pass away. Securing life insurance for your parents can help cover this.
- Your Parents are Having Trouble Getting Their Own Insurance: Some seniors find that they have a really hard time finding coverage. Some older parents aren’t very tech-savvy and don’t really know how to shop for life insurance online. As someone who might be a bit more familiar with technology, you can help by shopping for coverage online. This makes things easier for senior parents and can help you ensure that they’re covered.
- Your Aging Parents Want to Ensure Their Funeral is Paid For: Funerals are expensive. Your aging parents might not have any money set aside to pay for their funeral, and they may want to avoid putting this financial burden on you and their other family members.
- Your Senior Parents Want to Leave Something Behind: Your senior parents could be concerned about the idea of not leaving something behind for their children and grandchildren. Even though face value amounts are usually rather small when compared to some other parent life insurance policies, they can allow your loved ones to leave behind something of a legacy.
- You’re Concerned About Other Final Expense Issues: There are many different types of final expense that many adult children end up having to cover. Your older parents might have various debts, or they might leave behind a lot of medical bills when they pass away.
These are just some of the reasons why adult children find themselves buying insurance for their parents. You and your own parents might have your own reasons. Regardless of why you want to purchase life insurance, you should know that there are plenty of plans out there for those who are over 60, over 70 and even over 80.
Do Your Parents Have to Know or Be Involved in the Process When You Purchase Life Insurance on Them?
This means that it might be time to have a difficult conversation with your senior parents. You can do all of the work of shopping for a life insurance plan for your parents. In fact, you can get online on our website to shop for life insurance for elderly parents. You can also sign up as the owner of the policy, and you can be the payer and the beneficiary as well. However, since your older parents are going to be the insured individuals on their life insurance policy, so they are going to have to sign the paperwork before you can sign them up. They may have to answer questions about their health, although you can help with this. They may also have to go through a brief telephone interview, but this should be something that they are able to do from the comfort of their own home, and they should not have to worry about anyone from the life insurance company actually visiting their home.
Is it Too Late to Purchase Life Insurance for My Parents?
One thing that many people worry about is that it might be impossible for them to find life insurance for their parents. Unfortunately, for some people, this is a legitimate concern. Finding life insurance for parents over 70, can be more challenging than a lot of people realize. Many providers that offer coverage prefer to sell it to younger individuals.
Because of this, it is important not to wait any longer than you have to when buying life insurance for parents. Also, for parents who are older or who have more serious health issues, there is more of a chance that there will be a waiting period when you do finally find life insurance for your elderly parents.
Do My Parents Have to Answer Questions About Their Health When Buying Life Insurance?
In general, when you’re shopping for life insurance for elderly parents, you should expect to answer questions about their health. This can be difficult or impossible to avoid. However, you shouldn’t allow this to let you think that you won’t be able to find life insurance for elderly parents. Even though a lot of the providers that offer life insurance for the elderly do ask questions about health, they aren’t usually looking for information about minor health issues.
Where Does the Money Go After My Parents Pass Away?
After you compare options and find the best life insurance rates for an affordable plan, you and your loved ones will need to fill out an application. During the application process, you will be asked to designate a beneficiary. In many cases, people nonprofit one of their adult children as the beneficiary of the plan. They may also choose to designate a funeral home or non-profit organization as their beneficiary.
What Can the Money Be Used For?
It is up to the beneficiary who is listed on the life insurance application as to what the money will be used for. Traditionally, the money from these plans is used to cover final medical bills and funeral expenses first. Then, the rest of the money might be used to cover things like the time that the adult children had to take off of work to handle the funeral arrangements. Whatever is left might be given to the adult children or grandchildren or many are donated to a non-profit organization.
Things to Understand Before Purchasing Life Insurance for Parents
- The Company You Choose is Important: When shopping for a life insurance plan for parents over 70, your options might be somewhat limited. However, it is still best to compare options and application processes between several providers before making a choice. Some providers have a stronger financial backing than others, some offer more affordable premiums than others, and some do not require a waiting period while others do. When purchasing a plan, it’s always wise to shop around. Fortunately, you can use our search tool to do so and to make purchasing easier.
- There Might Be a Waiting Period: Some plans will not give the entire death benefit if the insured passes away during the first couple of years after buying the plan. Some require a two-year waiting period before any funds will be distributed. Some give a percentage of the death benefit during the first couple of years.
- You’ll Want to Look for a Fixed Policy: Along with comparing rates and looking for an affordable option before purchasing, you’ll want to look at other things. For example, you’ll probably want to look for a life insurance plan with a fixed premium so that the premiums don’t go up as your loved one ages.
- It’s Critical to Look for a Policy That Will Last for Their Entire Lives: Some people “age out” and outlive their plans. Make sure that you look for a plan that will cover your loved ones for their entire lives.
What are Some Sample Life Insurance Quotes for My Parents?
These are some quotes that were pulled from our quote engine; they can give you an idea of approximately how much these life insurance plans usually cost.
For a tobacco-free male who is looking for $10,000 in coverage:
- 70 Years Old: $72.68
- 80 Years Old: $132.65
For a tobacco-free male who is shopping for $15,000 in coverage:
- 75 Years Old: $147.69
- 80 Years Old: $197.38
How to Apply for a Life Insurance Policy for My Parents
These are some of the best life insurance companies out there, although there are other great companies out there that also offer coverage. It’s always a good idea to compare your options from these companies and more:
- Globe Life
- Royal Neighbors of America
- Mutual of Omaha
- Colonial Penn
Are you ready to purchase a life insurance plan for your parents or loved ones? If so, use our website’s search tool or give us a call for help.