Can I buy life insurance on my parents over 80?
Can I buy life insurance on my parents over 80?
When it comes to the question of being able to purchase life insurance on another person, quite a few issues come up.
There are a number of things that life insurance companies need to approve a life insurance policy.
In order to take a policy out on someone else, several requirements need to be met in order for it to be legal.
Who are you able to buy a life insurance policy for?
In order to prevent insurance fraud, you need to have a reason for why you are taking a life insurance policy out on someone. In most cases, this refers to close relatives, although you can’t take a policy out on just any relative.
To buy a life insurance policy for someone, you would need to prove that you have a relationship with this person in which your financial situation would be negatively affected in the event of their death.
This being said, if you do not have a close relationship with your parents and you aren’t dependent on them financially, you probably won’t be able to buy a policy on them.
Along with relatives, another person who you may be able to take out a life insurance policy on is an important employer or employee. T
This is known as a life insurance policy for a key employee.
What does insurable interest mean?
Insurable interest refers to the direct relationship between the beneficiary and insured and financial help. Sometimes just a type of relationship assumes insurable interest, although this is not always the case. These relationships may be between:
- Parent and child
- Business partners
The purpose of taking out a policy on someone else is supposed to be for financial compensation for continued help, rather than for profit.
For example if you took out a life insurance policy on your parents to be able to pay for their mortgage if they passed away, the amount of the policy should be about equal to the cost of the house and fees associated with it, and nothing more for you to keep on your own.
Without proving insurable interest, the chances of buying a life insurance policy for another individual are slim.
You have an even slimmer chance of taking out an insurance policy on someone without their permission or knowledge.
Can you buy a life insurance policy for someone without their knowledge?
In order to protect against wrongdoing and fraud, insurance companies have put in place a number of policies that need to be followed when purchasing life insurance.
In order for you to take out a policy on someone else without them knowing about it, you would have to do it illegally and sneakily.
More than likely you would not get away with it, as insurance companies spend a lot of money every year investigating and fighting insurance fraud.
If the death of someone you took a policy out on died, there would be many questions for you and proof that you would need to show.
What do you need for a life insurance policy?
If you took out a life insurance policy on your parents, there would be a number of things that the insurance company needed from them.
Most companies require medical tests of some kind.
For some, this is just a blood test and health related questions.
For other companies the tests may be more involved and complicated, especially if there is a history of illness.
Often the insurance company will also request not only medical records, but financial records as well.
Life insurance companies usually need a social security number for the life insurance application.
You may know your parents social security number but that would be difficult to fake for someone else, which is another reason why it can be hard to buy insurance someone else.
Lastly, the insurance company needs the person’s signature of who you are buying the policy for.
This shouldn’t be a problem provided the individual knows what you are doing, but it would be more difficult to fake.
How do you buy life insurance for your parents?
If you have insurable interest with your parents and they agree with you taking out a policy on them, the next step is to speak with a life insurance agent.
If you already have life insurance, you can use the same company or you can use the Internet to find one. Once you find a company you want to work with and explain the situation, they will be able to walk you through the next steps.
We are highly qualified to provide you a life insurance policy for your parents.
If you are looking for something to cover final expenses, you will want a permanent policy that will not go up in price for the rest of her life, or that you can pay off in a certain number of years.
Getting term life insurance, or permanent coverage with rates that are not locked in, could cause the policy to be unaffordable just about the time she needs it.
We regularly offer Life Insurance for parents.
It is a great way to ensure that you receive an interest that is guaranteed.
If your parents are in average health they probably can get life insurance at a fair price. If their health are poor, there is always guaranteed issue life insurance for smaller amounts.
My parents need life insurance where can I find it?
This depends on their age and health, however, most independent life insurance agents should be able to help.
Small amounts of coverage can be had through so-called simplified issue policies that do not require a physical.
If you are looking for amounts over $25,000 then your best choice in terms of cost is normally a guaranteed premium universal life policy know for its relatively low cost compared with whole life and both will cover them for their lifetime.
Call us at 813-964-7100