Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Can You Buy Life Insurance On Your Parents?

It’s quite common for people to take out a life insurance policy on themselves or a spouse. But can you buy life insurance on your parents? And why would you want to do that?

The answer is yes, you can buy a life insurance policy on behalf of one or both of your parents. Now all that’s left to determine is why and how such a purchase would be made.

Reasons for Buying Life Insurance on Your Parents

Buying life insurance for yourself is done in order to protect those that depend on you from financial hardship after you pass. So it only makes sense then that buying life insurance on another person is done when the death of that person could affect your financial situation.

Many children are still financially dependent on their parents for helping out with things like student loans, cars, rent, health insurance and more. A 2011 study found that 59% of parents still provide financial support for their adult children. And for the first time in more than 130 years, the No. 1 living arrangement among 18-to-34-year-olds is with their parents.

Even if you are no longer financially dependent on your parents, you may still be dependent on them in other ways that hold value. They may watch your children while you are at work, saving you from the expensive cost of daycare. If your parents were to pass away, the cost of childcare is one you would now need to take on.

Another reason for buying life insurance on your parents is to help out with the cost of their funerals. A proper funeral will cost several thousand dollars, something you may not be able to afford in a pinch gut something a life insurance payout can quickly cover.

There are some debts left behind by parents that may be passed on — directly or indirectly — to their children. Unpaid medical or hospice care bills or an outstanding balance on a mortgage, car or credit card can affect how much children receive in their inheritance. But the payout from a life insurance policy can help alleviate those outstanding debts.

Do Your Parents Have to Know?

Having a conversation with your parents about buying a life insurance policy on their behalf can be a difficult one. But it’s also one that typically cannot be avoided. Your parents will have to sign their consent on the policy application and will most often be required to undergo a medical exam.

But talking to your parents about buying life insurance on their behalf may be easier than finding yourself in a financial burden because you didn’t purchase the proper amount of coverage. If you buy too much, you can be faced with expensive premiums. Buy too little and you may not receive enough of a payout when they die.

Find out what kind of debts they have, calculate how much tax may be imposed on their estate and determine how financially dependent you are on them in order to arrive at a comfortable amount of coverage to buy.

A licensed sales agent can answer all your questions about buying a life insurance policy on behalf of your parents. Connect with us online or give us a call at 800-966-7169 today.


Pew Social Trends:
The Balance: 


*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.

Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Related Information

Yes, You Can Buy Life Insurance On Your Parents

It's possible for you to buy life insurance for your parents. Learn more about what types of policies are available.

Read More

Life Insurance On Parents Without Their Consent

If you wish to purchase life insurance on one or both of your parents, you will need their consent to do so legally.

Read More

Are My Parents Eligible for Life Insurance After 60?

Learn about popular types of life insurance policies for parents who are over the age of 60.

Read More

A Guide to Spouse Life Insurance

Spouse life insurance is simply the act of taking out a life insurance policy on behalf of your spouse. Learn about your options.

Read More

Do You Have To Have Life Insurance With A Mortgage?

You don't have to have life insurance with your mortgage, but life insurance can help your loved ones make house payments after you die.

Read More

What Is Supplemental Life Insurance?

Supplemental life insurance policies can work alongside your employer-provided life insurance coverage. Learn more about this form of life insurance.

Read More

Joint Life Insurance Policies

Under joint life insurance policies, you and your spouse can gain protection for an entire lifetime or for a specific term. Find the best plan for you.

Read More

Can You Buy Life Insurance With No Medical Exam?

For those who have possible health issues, there are life insurance options that do not require a medical exam.

Read More

Who Needs Life Insurance?

Wondering whether you need life insurance? Read on to learn whether it’d be a good idea to buy coverage for your loved ones.

Read More