That means your parents might need you to step in at some point to support them financially. Whether they move into your home or you pay for their nursing home bills, the costs can add up. One solution? Life insurance.<\/p>\n
If you\u2019re wondering, \u201cCan I get life insurance on my parents?,\u201d the answer is yes. As long as they agree to it, taking out a life insurance policy for parents can provide you with a cash payout to cover the costs of their care after their death. No parent wants to be a financial burden, and life insurance gives you both peace of mind that their needs are covered. Some policies also provide a partial payout during a parent\u2019s lifetime to help with immediate expenses.<\/p>\n
Here\u2019s what to know before you buy.<\/p>\n
Reasons to get a life insurance policy for parents<\/h2>\n
Life insurance provides a financial cushion to help loved ones cover expenses after a death<\/a>. You might already have your own policy to cover your family in a worst-case scenario \u2013 and if you have a partner or kids, life insurance is a must-have.<\/p>\n Beyond purchasing your own policy, sometimes it makes financial sense to buy coverage for someone else. When the insured person dies, the policy pays a lump sum of cash that you can spend on whatever you choose, like paying day-to-day expenses, covering debts, or saving for the future. People often buy life insurance for parents to cover common situations like:<\/p>\n Caregiving for an older parent is incredibly thoughtful, and it can also be expensive. You may welcome a parent to come live in your home or pay for residential care once they\u2019re unable to live on their own. In some cases, you might also take time off work to care for a parent who\u2019s sick or needs help with daily tasks. Once they pass, a life insurance payout can help cover these expenses.<\/p>\n A 75-year-old spends about $7,000 annually on medical expenses<\/a>, and a major illness can mean even bigger bills to pay. Some forms of life insurance come with a cash component you can access while they\u2019re living to help cover hospital bills, at-home care, and more.<\/p>\n On average, funeral costs start at about $9,000<\/a>. It\u2019s important to talk with your parents sooner rather than later about their end-of-life wishes<\/a>, so you have time to plan financially for them. A life insurance policy is a good way to earmark money specifically for their funeral or related costs.<\/p>\n No one wants to pass down an inheritance of debt, but sometimes it\u2019s unavoidable. Life insurance can cover any co-signed debts that could impact your own budget if you\u2019re suddenly responsible for paying them off.<\/p>\n A life insurance policy can give your parent a way to leave something behind for you, your children, another loved one, or a charitable cause. You can choose multiple beneficiaries<\/a> for a life insurance policy, so your parents can carry out a variety of wishes.<\/p>\n Once you\u2019ve decided a policy is the right move, how do you actually buy life insurance on a parent? These steps can help make the process go smoothly.<\/p>\n Be open with your parents about the type of care they\u2019d like as they get older. For example, will they want to live with you? Are they open to residential care or live-in help? This is also a good time to figure out if there are any causes or family members they\u2019d like to provide for after they\u2019re gone.<\/p>\n To buy life insurance for a parent, they need to provide consent and be legally competent to sign the paperwork. You\u2019ll also need to prove insurable interest, which means showing that their death will have a financial impact on you. You shouldn\u2019t have a problem with this if you\u2019re supporting them. Finally, you\u2019ll need their personal information, like their Social Security number, to complete the application.<\/p>\n There are several types of life insurance for seniors<\/a> to choose from based on your parent\u2019s needs. Once you\u2019ve discussed their needs, you can pick the plan and coverage amount that makes sense for both of you. Read on for tips on choosing the right policy for a parent.<\/p>\n It\u2019s important to assign a beneficiary for your parents\u2019 life insurance so that the money supports their wishes. Depending on the plan you and your parents pick, you can be the sole beneficiary or you can split the benefit between multiple recipients. You may also choose to assign one or more contingent beneficiaries<\/a> to ensure the money goes to the right people or place.<\/p>\n No, you need your parents\u2019 consent to take out a life insurance policy on them. You can fill out the application for them, but your parents will need to sign it (which also means they need to be legally competent to do so).<\/p>\n Once you\u2019ve decided to buy life insurance for your parent, the faster you\u2019re able to do so, the better. Life insurance policies are more affordable when the insured person is younger and healthier.<\/p>\n Wondering about the best life insurance for parents? The right plan depends on your parent\u2019s age and health, your budget, and your financial goals.<\/p>\n Term life insurance<\/a> can help cover your parent for a few years, like while they\u2019re paying off the last few years of a mortgage or other debts. Keep in mind that term life is generally available for people up to age 70; permanent policies are a better fit for older parents.<\/p>\n Permanent life insurance<\/a> lasts for your parent\u2019s entire life, as long as you make the payments on it. It\u2019s more expensive than term life, but can provide a guaranteed source of funds to help cover lost wages, medical bills, or funeral expenses.<\/p>\n Final expense life insurance<\/a>, also known as funeral or burial insurance, is a smaller policy typically used for funeral expenses and related costs. These policies have lower premiums compared with other permanent life plans, so they can be a good choice if you want affordable coverage specifically for these expenses.<\/p>\n Guaranteed issue life insurance<\/a> is often the best option for people who can\u2019t qualify for other policies because of their age or health. Premiums are higher and coverage amounts are lower than other policies, but guaranteed issue can still provide a cushion to cover funeral expenses or other needs.<\/p>\n The cost of life insurance for parents is based on a number of factors, including policy type, coverage amount, and the age and health of the insured. If your parents are over 50<\/a> or have declining health, they’ll likely experience higher rates. The only way to know for sure how much you’ll pay is to get a quote<\/a>.<\/p>\n If you\u2019re supporting your mom or dad later in life, the costs can add up quickly. Buying life insurance for your parents can help protect you financially, so you\u2019re able to provide them with the best care possible.<\/p>\n Fidelity Life is here to answer your questions and walk with you every step of the way. Get in touch with us<\/a> or start your online quote today<\/a>.<\/p>\n For years, your parents were responsible for taking care of you. As they get older, sometimes it\u2019s your turn to take care of them. Many older adults don\u2019t have enough savings to cover their expenses, from unexpected medical bills to rising housing costs. In fact, about 30% of Americans over 45 have no retirement savings, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-216203","post","type-post","status-publish","format-standard","hentry","category-life-insurance-101"],"yoast_head":"\n1. Paying for your parents\u2019 care as they age<\/h3>\n
2. Covering health or other expenses now<\/h3>\n
3. Paying for a funeral.<\/h3>\n
4. Covering your parent\u2019s debts<\/h3>\n
5. Helping parents carry out their wishes<\/h3>\n
How to buy life insurance on a parent<\/h2>\n
1. Talk to your parents about their wishes<\/h3>\n
2. Get your parents\u2019 consent to buy the life insurance policy<\/h3>\n
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3. Select a plan and coverage amount.<\/h3>\n4. Choose a beneficiary.<\/h3>\n
Can you get life insurance on a parent without their consent?<\/h2>\n
What type of life insurance should you buy for your parents?<\/h2>\n
If your parent only needs coverage for a specific period of time<\/strong><\/h3>\n
If you\u2019re looking for lifelong coverage to cover big bills<\/strong><\/h3>\n
If your parents want to budget for their funeral costs ahead of time<\/strong><\/h3>\n
If your parent has significant health issues<\/strong><\/h3>\n
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<\/p>\nHow much does life insurance for parents cost?<\/h2>\n
Still have questions about life insurance for parents<\/h2>\n
\nAt Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"