How to get life insurance for your parents.
Although nobody wants to think about the loss of a parent, securing life insurance can make sure you don’t get stuck with a funeral bill you might not be able to afford.
Thinking about the inevitable is tough, but securing life insurance for your parents is a smart financial decision. Life insurance can cost a fraction of what a funeral bill will be. There are a few different plans that allow you to secure the coverage you need to protect yourself.
In this article, we will teach you about the types of plans available for parents, the underwriting guidelines, how to get the lowest cost and a few other tips.
Can you buy life insurance on your parents?
Yes, you can buy life insurance for your parents. But you will have to have three things.
- Insurable interest – (will have to prove their death will have a monetary impact on you)
- Consent – (means they will have to know about the policy and sign the application as either the insured or owner)
- Participation – (there is a chance of a phone interview needed depending on the carrier, so your parents will have to participate in the application process)
If you have those three things then you should continue reading.
What are the best types of policies for parents?
Typically when looking for a policy for your parents, you are just looking for enough coverage to cover burial expenses. Choosing which type of policy is best will be determined by your parent’s health if they are in good/moderate health then a Final Expense policy will be the cheapest and the best type of policy.
If they have a significant health issue and can not medically qualify, then the best policy type will be a Guaranteed Issue policy.
Don’t worry when you work with an Insurance Geek they will help understand these types of insurance policies and find you the lowest cost. If you need more coverage than just a burial policy then see this article on life insurance for seniors here.
Try Our GI Quick Quote Below.
How is the cost determined
Several things will determine the price of a life insurance policy on your parents. The cost will be different from one individual to the next. Here are some of the factors that will make up the cost.
- Policy Type
- Tobacco Use
- Coverage Amount
You can learn more about the average cost of life insurance here.
When you buy a policy on your parents, the policy structure can be set up in several ways. You know who the insured will be (your parent), but who will be the payor, owner, and beneficiary of the policy? And why are these important?
- The Payor – (this is who will pay for the policy. It can either be you or your parent)
- The Owner – (the owner can be you or your parent. The owner will have rights to make changes to the policy and even cancel it at any time.)
- The Beneficiary – (you can be the beneficiary of the policy. Whoever the beneficiary is can spend the death benefit however they want)
Underwriting for Parents
Insurability for a Final Expense plan will depend on answers to medical and other application questions and underwriting review. No blood test or medical exam will be needed for this product type.
Reports that will be ordered to make the underwriting decision:
- an MIB, Inc. check
- a prescription history check
- a build chart review
- a Personal Health Interview (PHI)
Getting life insurance quotes for your parents is easy. We have built an exclusive quote widget to help you get quick quotes.
Once you have run quotes and found a cost you like, you can then apply online through our online application process.
Your application request will come directly to your new agent (Geek), and they will assist with submitting the application to the carrier and signing the application. They will verify and check to make sure there are no better offers available and you are with the best carrier before you apply.
Getting life insurance on your parents is crucial if you don’t want to get stuck with the cost of their final expenses.
A lot of time, parents don’t plan for this event or even want to talk about it, and, hey, I can not blame them. Death is a scary subject and sometimes a difficult on to approach. So if you follow the steps above, you can quickly and easily find a policy that will protect you in the future.
If you have questions, don’t hesitate to contact us. Insurance Geeks are good at this insurance stuff, and we can help you every step of the way.