Can I Buy Life Insurance For My Parents?
This has to be one of the questions we get the most.
The answer is simple, yes, you can buy life insurance for your parents, either for your father or mother, or both. Usually you just have to show insurable interest to the life insurance company.
Being that you are the son or daughter, showing insurable interest is pretty much a given. The death of either of your parents can be shown to be a financial burden on you.
Why It's A Good Idea To Insure Your Parents
You and your siblings may need help paying for final expenses like burial and funeral costs, cremation, grave site, etc. With average costs of a funeral at around $15,000, it's a good idea to get some financial help in case your parents don't leave you with money to cover those expenses.
Furthermore, you may need the life insurance proceeds to pay estate taxes or any other financial burden left by your parents.
Adult children are usually a bit hesitant talking to their parents about such a delicate subject, but the longer you wait, the more money will cost you to insure them. Just make sure to explain what the money will be used for, and your mother and father will, most likely, be okay with a policy taken out on them.
Do I Need My Parents' Consent To Get Life Insurance On Them?
Yes, you do.
To be able to purchase a policy on a parent, you need their written consent - they'll need to sign the application. Furthermore, in most cases, they'll have to provide you with their medical history, medications they are taking, plus many more details. So, they need to know about it.
How Much Coverage Do They Need
It all depends on their specific situation. Do they have any outstanding debts like medical bills and personal loans?, are they leaving any money for final expenses?, what kind of funeral and burial are they contemplating?, do they need an expensive headstone or want to be buried in an expensive cemetery?
Figure out all of the above, and you'll know how much life insurance coverage to get.
They Are Elderly, Can I Still Insure Them?
You may be asking yourself if it is still possible to insure them if they are 65 or older, or even over 70, but if they are in good health and don't have any vices detrimental to a person's health - smoking and/or heavy drinking - life insurance coverage is still possible.
Although, you may not be able to get a long term policy on them, like 20 year term or 30 year term.
