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Buying Life Insurance for Your Parents
Adults over the age of 60 can generally qualify for life insurance, especially if they're in relatively good health. If you're considering buying a policy for your parents, here's how to determine the right amount and best type of coverage for them.
Why Buy Life Insurance On Your Parents?
There are several reasons why purchasing life insurance on your parents could be beneficial to you.
Purchasing life insurance on your parents can ensure that you don’t inherit their debt, or have to pay funeral and burial expenses out-of-pocket. Death benefit proceeds can be used to help cover funeral costs, offset long term care and medical expenses, and satisfy any remaining debt obligations.
The types of life insurance policies that are best for covering those types financial needs are term life insurance, permanent life insurance, and final expense insurance.
Term Life Insurance
A term life insurance policy is generally the least complicated and most affordable life insurance policy, but some people over 60 may have a hard time finding a traditional term policy. If your parents are over the age of 60, securing a term life insurance policy for more than five to 10 years can be difficult and expensive.
Permanent Life Insurance
Permanent life insurance doesn't expire like term life insurance. Once the policy goes into effect, it remains there for your entire life. It also accumulates cash value over time due to its investment component. However, older applicants my run into the same problems they would with a term policy if it's fully underwritten and they aren't in the best health.
Guaranteed Issue Life Insurance
Guaranteed issue life insurance is another good insurance option for older adults (between ages 50-85, in many cases) if they have health concerns. Designed specifically to cover end-of-life expenses, such as your funeral, burial and hospital costs, guaranteed issue policies generally have low face value (usually under $25,000) and do not require a medical exam or a health questionnaire. This makes them ideal for those with preexisting conditions or health issues that prevent them from a traditional life insurance policy
*These plans may have a graded death benefit for an initial period of time.
Finding Affordable Rates
Finding an affordable life insurance policy is easier when you understand the process. Read through some of our tips below before applying for a life insurance policy.
- Determine your life insurance needs so you don't buy a policy that is too small or too large
- Apply as soon as possible — even a few years can make a huge difference in premium rates
- See if your insurance provider offers discounts on policies bought together (if you want to insure both parents)
Get a Quote
Speak with a licensed agent at 800-966-7169 to get a free quote today.
*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.