6 Best Tips for Buying Life Insurance for Parents
6 Best Tips for Buying Life Insurance for Parents
After raising you and providing all the love and support you’ve needed throughout your life, your parents may be entering their senior years.
While it’s not nice to have to think about it, the reality is it’s a good idea to start thinking about the future, and having things in order for when they pass away.
As well as the obvious emotional distress, the death of a parent can also place you and your loved ones under serious financial strain.
Taking out life insurance for elderly parents is a simple and convenient way to help lessen the financial burden when they pass away.
Can you buy life insurance on another person such as your parents?
YES you can, but in order to purchase a policy on someone else, you will need their consent. Might be a littleweird to tell your mailman you want to take out $500k on his life and ask him to sign.
Since consent is required, it’s extremely difficult for a policy to be purchased on someone’s life without them knowing.
On top of the consent, most life insurance policies require a medical exam be performed on the insured. Even if they don’t remember signing the application, do you think they’ll notice blood being drawn?
Consent is another check against any bad intentions. Consent must ALWAYS be given by the insured before a policy can be issued.
Life Insurance for Elderly Parents Insurable Interest
Often times children will be responsible for covering their parents funeral expenses and certain debts.
Do your parents watch the kids while you are at work? That would result in an additional financial hardship as you’d now have to find (pay for) a new day care option.
Insurable interest means that you would be adversely affected financially in the event of the death of the insured.
Examples of insurable interest:
- You would become responsible for any of their financial obligations if they passed away.
- You currently rely on them financially.
- You and your parents co-signed on a loan together.
Your parents’ ages make a difference on what type of life insurance you can buy.
Term life insurance isn’t available to all ages.
If your parents are over the age 75, a permanent life insurance policy or guaranteed issue policy may be your best option if you’re looking for lifelong coverage.
The life insurance cost of guaranteed issue life insurance is quite high.
However, these policies do not require any health information or a medical exam in order to be approved, so, for some, the cost is worth it.
6 MUST KNOWs when Buying Life Insurance on Parents
- The most important thing to be aware of when buying life insurance for an elderly parent is that cover will be expensive.
- Generally speaking, the older the life insured, the more expensive the cover. This is simply due to the increased risk of illness for elderly people, and hence the increased likelihood you will need to make a claim.
- A lot of life insurance gets more expensive as the insured person gets older, and you should consider how long you’ll need the cover and what that would cost.
- Another factor to consider is the insurer’s approach to pre-existing conditions.
- If your parent already suffers from certain conditions, check with the insurer to find out whether they will be covered or excluded. If they are covered, find out if this means a premium loading will be applied, and if so, work out if you can still afford it.
- Make sure to disclose everything you know, because insurance providers need to understand the whole picture to provide the best cover, or (to decide) if they can cover your parents in the first place.
THE Best Life Insurance for Elderly Parents
When it comes to finding the right life insurance policy for your parents, it is important to be able to compare a lot of options on the market.
This is where working with an independent life insurance agent is important. Our agents can help you compare dozens of the best life insurance for seniors companies, policies, and rates for your specific situation.
Give us a call today to speak with an expert and discover more about senior life insurance options.
Or get started now using our online rate comparison tools to find no medical exam life insurance quotes for you.
Call 813-964-7100
Go to www.MintcoFinancial.com to get a free quote online
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Email us info@mintcofinancial.com
