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One of the most common questions we're asked is, “Will they let you buy life insurance for parents?” The answer is yes! There are many reasons to buy life insurance on your mother or father.
Our company has had a lot of experience with life insurance for parents policies and we can walk you through the simple process of acquiring the best policy for your needs.
One of the most important decisions of my life was to buy life insurance on my father.
My mother can do some things independently, but her care depends on my father. The thought hit me one day, “What would happen if my father died?” I am the oldest of 3 siblings, and we all have children of our own, as well as full-time jobs.
Due to years of large medical bills, most of my parents’ savings and assets have been depleted. If something were to happen to my father, the responsibility of my mother’s care would be mine. A term no exam life insurance policy on my father was a perfect solution to this possible situation.
If he dies before my mother, we will have plenty of money to pay for her care and to take care of her financial needs. Do not let the expense of life insurance for parents premiums hold you back from protecting your family.
I was not able to buy life insurance for my mother due to her health condition. However, if both of your parents are healthy and they plan to leave you a substantial inheritance, you might want to purchase a life insurance policy to pay for tax liabilities. Life insurance is money you will receive tax free.
On the flip side, if your parents do not have a lot of money and are overwhelmed with outstanding debts, a life insurance for parents policy can help make sure the estate can pay their debts off.
If you have siblings, talk to them about splitting the premiums. By doing this, you can get more coverage and share the responsibility. The more life insurance for your that you buy, the lower the cost per thousand dollars of coverage.
As the oldest child, I asked my sisters a serious question. Would you rather pay 30 dollars a month per person for Dad’s insurance or would you rather pay thousands of dollars per month later for Mom’s care if something happened to Dad.
They both agreed to split the premiums with me. This decision to purchase a life insurance for parents policy gave everyone in the family peace of mind.
The amount of coverage depends on the overall purpose of your life insurance for parents policy. If you solely want to cover burial expenses for each parent, you might take out a final expense policy - usually between $5,000 - $25,000. These "final expense" policies are whole life insurance policies that don't require a medical exam and are issued within a week or so.
If you want enough coverage to leave an inheritance, you'll have to make sure the amount of coverage is justified. Anything $250,000 and below will fly under the radar with life insurance companies and they won't question it. Anything above $250,000 and the life insurance company will want specific reasons for the coverage.
Ideally, you'll want to buy a guaranteed universal life insurance policy. This is a life insurance for parents policy guaranteed to remain level for the rest of your parents life. Coverage is guaranteed until you stop paying premiums, premiums remain level and will never go up and coverage amount stays the same. With this policy, your parents can't outlive the term length and it's the cheapest "permanent" coverage you can buy. It's a no-brainer if you can afford it.
Remember, the older your parents are, the higher the premiums will be. However, don't let age scare you. Term life insurance can still be affordable at later ages.
Don't worry, we can help you with this if you decide to apply. Just be aware that there are strategies when structuring your policy. For example, ideally you want:
Insured: your parent(s)
Owner: you
Payor: you
Beneficiary: you
This setup requires a few forms to be filled out and a short explanation on the application. We can take care of this and get this through underwriting.
However, sometimes you can't structure your life insurance for parents policy this way because of multiple beneficiaries or owners of the policy. We'll advise you on what to do in these situations.
Regardless of how much life insurance you’re buying for your parents, or the type of plan that you’re buying, we can help you ensure that you’re getting the best plan to meet your family’s needs. Unlike a traditional insurance company, we work with dozens and dozens of highly rated companies across the nation. There are several advantages of working with one of our experienced agents. We can give you unbiased and honest advice, and we can also bring the lowest premiums directly to you.
Every company is going to offer you different rates based on their medical underwriting and rating system, which means you can get drastically varying rates depending on which company that you get the quote from. Finding the perfect company could be the difference between getting an affordable life insurance policy or paying for a plan that’s going to break your bank every month.
Our company has the ability to attain quotes from over 40 life insurance companies and provide you with the best life insurance rates available for your parents. Fill out the form on the side of the page to view instant quotes OR give us a call and we will help you every step of the way!
We know that shopping for life insurance coverage is not a fun task, but that’s why we are here to help. It’s our mission to ensure that you’re getting the best plans as quickly as possible. Nobody wants to think about anything tragic happening to their loved ones, but it’s vital that your family has the coverage that they need. You never know what’s going to happen tomorrow, which means that you should wait any longer to get the insurance protection that they need.
If you have any questions about getting life insurance for your parents, or you’re ready to start shopping for coverage, please contact one of our agents today. We would be happy to answer those questions and ensure that you’re getting the best plan available.