HOW TO BUY LIFE INSURANCE FOR ELDERLY PARENTS

Can I buy life insurance for my elderly parents?

If you are buying life insurance for yourself, there are several steps that are necessary in order to complete the purchase. These typically include filling out an application for coverage and taking a medical exam. But what if you are buying life insurance on your parents?

Usually, when buying life insurance on another individual – including coverage for a parent or parents – you will need to have their knowledge and approval. In most instances, prior to turning age 85, buying life insurance on your parents can be relatively affordable. This, however, will depend in large part on both the amount and the type of coverage that you choose. It will also depend upon the insurance company that you’re purchasing the policy through.

Why Should You Consider Purchasing Life Insurance for Your Parents?

There are many reasons why you might decide to buy life insurance for elderly parents, even if you are no longer depending on them for their financial support or housing.

For example, one of the biggest reasons why adult children buy life insurance for elderly parents is to cover the cost of burial and other funeral related expenses. Today, on average, final expenses can run in the neighborhood of $10,000. This is especially the case when you factor in the price of a burial plot, head stone, flowers, and the memorial service itself.

In addition, your parent or parents may have some uninsured medical and / or hospice costs that could become your responsibility after their passing. Unfortunately, Medicare and other health insurance coverage options for seniors can leave a lot of out-of-pocket expenditures for enrollees. Unpaid medical debt can in turn become the family’s obligation once a person passes away.

You may also consider purchasing life insurance for elderly parents if they have other unpaid debts, such as a mortgage, auto loan, or credit card balances. Unlike years ago when seniors would typically have most of their debts paid off, more people today are taking on new loans at older ages. One of the biggest reasons for this is our longer life expectancies.

Can You Buy Life Insurance for Elderly Parents?

While it is often not difficult to purchase a life insurance policy for yourself, there are some additional steps that you may need to take in order to buy life insurance for your parents. One key step is that you will have to prove insurable interest.

This means that you must let the insurance company know that you will incur at least some form of financial loss when your parents (or parent) pass away. Insurable interest is actually what makes an insurance contract valid and legal – and it essentially protects against intentionally harmful acts.

Some examples could be if you would be responsible for paying certain debts at your parents’ passing, such as paying off their mortgage, ridding the remainder of their credit card debt, and / or ensuring that all of their funeral and final expenses will be paid in full.

How Can You Purchase Life Insurance for Your Parents?

When you buy life insurance for elderly parents, you will need to take some key steps – starting with determining approximately how much protection is needed. As an example, if you are purchasing the coverage in order to pay for final expenses, then you could contact several funeral homes in your parent’s local area and inquire as to how much their services cost.

Likewise, if you are buying the insurance for the purpose of paying off specific debt such as the balance of your parent’s mortgage, then you should determine the amount of the total debt in order to come up with the coverage that you will need.

What If Your Parents Are Not in Good Health?

If your parents are in good health, then it is possible that they may qualify for a medically underwritten life insurance policy. This means that they would go through the regular channels when applying for coverage by completing an application for coverage, and then undergoing a medical exam with a paramedical professional.

If, however, your parents are not in good health and may not qualify for traditional coverage, they could go the route of a “no medical exam” life insurance policy. Without having to go through the medical examination portion of underwriting, many applicants who have various health issues are still able to qualify for the life insurance coverage that they need.

Premium pricing can vary a great deal from one insurance company to another. As independent life insurance specialists, we have access to multiple carriers, an advantage in helping you to find the best price in whatever your life insurance needs may be.

Taking the Next Step to Obtaining Life Insurance on Your Elderly Parents

In order to determine the type and amount of life insurance that you can purchase for your parents, requesting a quote is often the next best step. We can assist you with the details, as we work with a number of different carriers. We can also work with you in completing any additional paperwork that may be necessary, as well as writing a letter that outlines why your parent or parents should be approved.

Feel free to call us toll-free if you have any additional questions. We will be happy to help you with finding the right coverage to protect your family’s financial needs.