Ensuring your financial security after your parent’s passing — life insurance can help offer a safeguard against the unexpected or end of life, providing peace of mind for the years ahead.
Learn more about life insurance for parents, the requirements, how much it might cost, and some tips for finding the best policy.
Can You Get Life Insurance for Your Parents?
Yes, you can get life insurance for your parents if you get their consent and they meet the requirements when it comes to their age and health status. They may also need to take a medical exam. Before getting life insurance for your parents, you must also consider the coverage options available and the costs, which we’ll cover later on in this post.
Reasons To Get Parents Life Insurance
Life insurance for parents can be a great safety net that offers you protection and financial security if they pass away. Here are some other reasons why you may want to consider life insurance for your parents:
- Provides financial security for dependents: If you rely on your parents for financial support, you may face some challenges if one or both parents were to pass away unexpectedly. Life insurance provides a financial cushion to help with expenses like education, healthcare, and daily expenses.
- Can cover final expenses: If your parent(s) pass away, there are immediate expenses you’d likely have to pay, like funeral costs, outstanding medical bills, and legal fees. Life insurance can provide the necessary funds to cover these expenses without placing an additional financial burden on you or other family members.
- Helps pay off debts: If your parent(s) pass away and they have outstanding debts, such as mortgages, car loans, or credit card balances, life insurance earnings can help pay off debts. This can reduce financial strain on you and your family.
Read more to learn how to buy life insurance for your parents.
How To Get Life Insurance For A Parent
Children can buy life insurance for a parent or guardian in certain circumstances. Here’s an overview of when you can and how the process works:
- Get consent from your parent(s): Even though you’re paying for the coverage, they must consent to the policy by signing the application. If your parents are unwilling to participate in the process, you won’t be able to buy them life insurance. In that case, you can look into prepaid funeral options instead.
- Assess your parent(s) needs: Determine the amount of coverage needed based on your parent’s financial obligations, such as outstanding debts, funeral expenses, and any income replacement needs.
- Have insurance interest: To buy life insurance for your parents, you must have insurable interest. Insurable interest is when you would suffer a financial burden due to your parent’s death. The most common financial responsibilities that satisfy the insurable interest requirement usually include the following:
- Funeral bills (no proof required)
- Final medical bills
- Expenses to care for a surviving parent
- Financial debts that you cosigned as a responsible party for the debt
- Any cost that you would assume after the death of your parent
- Determine if a medical exam is needed: A medical exam is not needed for life insurance. However, some insurers will require a medical exam if your parent(s) has a health condition.
- Apply for insurance: Complete the life insurance application accurately, providing all required information. Be prepared to answer questions about your parent’s health and lifestyle habits. After submitting the application and any required medical information, the insurance company will review the application and determine the premium based on the risk involved.
5 Tips When Buying Life Insurance For Parents
If you want to buy life insurance for your parents, these five tips can help you save time and money, as well as find the best policy to meet your needs:
- Choose the correct type of policy: There are many types of life insurance policies (whole life, term life, universal life), and they all work differently. Choose the right kind that is best suited to accomplish your goal.
- Start by obtaining their consent: First, check with your parent(s) or guardian to ensure they’re willing to participate in the process and agree to the coverage. If they don’t agree, you can’t insure them. Buying life insurance for a child is the only time you can legally purchase coverage for another person without their involvement.
- Gather information about their health: Knowing their past and current health conditions will allow an insurance agent to give you accurate life insurance quotes and policy options.
- Use an independent agent: Independent agents compare multiple insurance providers on your behalf to ensure you get the best deal possible. Captive life insurance companies (such as State Farm) can only offer you one company.
- Be open to companies you’ve never heard of: In 2022, there were 727 life insurance companies in the USA. Less than 1% advertise nationally, so they’re a household name. It’s unwise to exclude 99% of the market because their company names are unfamiliar.
What Is The Best Life Insurance Policy?
The best life insurance policy for your parents depends on their age, health, and why you need the death benefit. Remember, there are many life insurance products, and they all function differently. Choosing the correct type of policy that will best satisfy your needs is critical.
That said, below are the most common reasons people want to insure a parent and which type of policy you should buy, given your objective.
- Final expense insurance: This type is ideal if you only need to cover your parent’s final expenses, like funeral costs. Burial insurance, also known as final expense insurance or funeral insurance, is a small whole life insurance policy specifically meant to pay for end-of-life costs.
- Whole life or universal life insurance: Both of these are permanent life insurances that build cash value and would be ideal to pay off any death taxes incurred by your parent’s estate.
- Term life insurance: This insurance policy would be ideal if you need to cover an existing mortgage balance. It could also cover any remaining car notes. At most, you would need a 10-year term insurance plan for this.
Consider that there is no one-size-fits-all when it comes to life insurance. For example, Mutual of Omaha’s burial insurance is generally the best final expense policy. But for some people, they aren’t the best option due to their health issues.
Best Life Insurance For Elderly Parents
Your parents’ age and health will dictate which types of coverage they’re eligible for and which companies might be best for them. It boils down to whether they are older or younger than 85. Getting life insurance over 80 is possible with many companies.
However, getting life insurance over 85 is possible, but options are more limited. If this is the case with your parent(s), one of the following companies will likely be their best option:
| AGE | Female $10,000 | Male $10,000 | Female $20,000 | Male $20,000 |
|---|---|---|---|---|
| 45 | $22.61 | $25.45 | $42.01 | $47.69 |
| 46 | $23.02 | $26.17 | $42.84 | $49.15 |
| 47 | $23.55 | $27.02 | $43.89 | $50.84 |
| 48 | $24.18 | $27.96 | $45.16 | $52.72 |
| 49 | $24.48 | $28.52 | $45.76 | $53.85 |
| 50 | $24.67 | $29.16 | $46.14 | $55.11 |
| 51 | $25.45 | $30.30 | $47.70 | $57.41 |
| 52 | $25.88 | $31.12 | $48.56 | $59.04 |
| 53 | $26.62 | $32.20 | $50.04 | $61.20 |
| 54 | $27.47 | $33.61 | $51.73 | $64.01 |
| 55 | $28.40 | $35.09 | $53.60 | $66.98 |
| 56 | $29.27 | $36.45 | $55.34 | $69.70 |
| 57 | $30.06 | $37.91 | $56.91 | $72.61 |
| 58 | $30.83 | $39.27 | $58.46 | $75.33 |
| 59 | $31.70 | $40.82 | $60.20 | $78.43 |
| 60 | $32.87 | $42.76 | $62.53 | $82.31 |
| 61 | $34.51 | $45.38 | $65.82 | $87.56 |
| 62 | $36.06 | $47.90 | $68.92 | $92.60 |
| 63 | $37.72 | $50.52 | $72.23 | $97.83 |
| 64 | $39.36 | $53.14 | $75.53 | $103.08 |
| 65 | $41.01 | $55.76 | $78.82 | $108.31 |
| 66 | $43.44 | $59.35 | $83.68 | $115.49 |
| 67 | $45.86 | $62.93 | $88.52 | $122.66 |
| 68 | $48.29 | $66.53 | $93.38 | $129.85 |
| 69 | $50.81 | $70.11 | $98.42 | $137.02 |
| 70 | $53.24 | $73.70 | $103.28 | $144.20 |
| 71 | $56.63 | $78.36 | $110.06 | $153.51 |
| 72 | $60.12 | $82.92 | $117.04 | $162.64 |
| 73 | $63.93 | $88.01 | $124.65 | $172.82 |
| 74 | $67.78 | $93.16 | $132.36 | $183.11 |
| 75 | $72.41 | $99.53 | $141.62 | $195.85 |
| 76 | $78.25 | $106.87 | $153.29 | $210.54 |
| 77 | $83.51 | $113.64 | $163.81 | $224.08 |
| 78 | $88.44 | $119.86 | $173.67 | $236.51 |
| 79 | $93.41 | $126.23 | $183.62 | $249.25 |
| 80 | $98.43 | $132.65 | $193.66 | $262.11 |
| 81 | $106.21 | $143.00 | $209.22 | $282.79 |
| 82 | $113.96 | $153.54 | $224.71 | $303.88 |
| 83 | $121.31 | $163.41 | $239.41 | $323.62 |
| 84 | $128.55 | $173.28 | $253.90 | $343.36 |
| 85 | $135.90 | $183.15 | $268.60 | $363.10 |
| 86 | $174.17 | $220.83 | N/A | N/A |
| 87 | $186.67 | $242.50 | N/A | N/A |
| 88 | $198.33 | $264.17 | N/A | N/A |
| 89 | $210.83 | $285.83 | N/A | N/A |
Some life insurance coverage has a waiting period of 2-3 years, and some does not. Typically, aging parents can still qualify for a plan that fully covers them right away.
Check with multiple providers because they all accept and reject different health issues. Most conditions are insurable except for dire pre-existing conditions, like:
- Cancer
- Diabetes
- Asthma
- High blood pressure
How Much Does A Life Insurance Policy Cost?
On average, life insurance for a parent will cost $50 to $250 monthly for $10,000-$50,000 in coverage. Life insurance rates depend on age, health, the type of policy you buy, and coverage amount.
The amount of coverage you need entirely depends on why you need life insurance for one of your parents. The same is true if you’re buying life insurance for a grandparent. The average funeral costs nearly $10,000. So, if you only need to cover their final expenses, buy $10,000-$25,000 in coverage.
The table below has some sample final expense life insurance quotes. All prices shown are monthly:
| Insurance Company | Coverage Options Above 75 | Max Age For New Applicants | Policy Type | When Policy Can Pay Out |
|---|---|---|---|---|
 | $2,000-$40,000 | 85 | Whole Life Insurance | No waiting period |
 | $1,000-$30,000* | 85 | Whole Life Insurance | No waiting period |
 | $2,000-$25,000 | 89 | Whole Life Insurance | No waiting period |
 | $2,500-$25,000 | 89 | Whole Life Insurance | No waiting period |
 | $2,500-$15,000* | 90 | Whole Life Insurance | No waiting period |
 | $2,000-$20,000* | 90 | Whole Life Insurance | Refund of premiums in first 12 months, 50% payout in 2nd year, then full benefits after 2 years |
| *Maximum coverage varies by age | ||||
How Much Coverage Do You Need For A Parent?
The amount of coverage you need entirely depends on why you need life insurance for one of your parents. The same is true if you’re buying life insurance for a grandparent.
If you need to pay off a debt, such as a mortgage, just buy enough coverage to pay it all off. Also, keep in mind that their age and health will heavily influence the cost of the insurance. For example, life insurance for someone over 70 costs much more than for someone in their 50s and 60s.
If you cannot afford as much as you’d like, try enlisting some loved ones to help you pay the higher premiums.
Know Your Life Insurance Options
Securing life insurance for your parents is a significant step toward ensuring their financial security and peace of mind for the whole family. By carefully assessing their needs, exploring available options, and working with reputable insurance providers, you can find a policy that offers the right coverage at an affordable price. Get a free quote now to help you compare insurance prices.
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- 727 life insurance companies. https://www.statista.com/statistics/194335/total-number-of-life-insurance-companies-in-the-us/
