As your parents age, you might adopt more caregiving responsibilities, like tidying their homes, taking them to doctors\u2019 appointments, or helping them manage their finances. It can be difficult juggling new financial responsibilities while also planning for your parent\u2019s futures. Fortunately, a life insurance policy can help, even if your parents are in their 80s. If they have trouble navigating the process on their own, you can get a life insurance policy for them. Discussing life insurance can be difficult, but it can assuage your worries about the future so you and your parents can enjoy this phase of your lives together.<\/p>\n
You can take out life insurance policies on your parents\u2019 behalf as long as you have their consent. Senior life insurance<\/a> can offer financial protection well into your parents\u2019 80s.<\/p>\n Before you decide on a life insurance plan for your parents, make sure you\u2019ve talked to them extensively. Ask about their financial situations, savings, plans for the future, and end-of-life wishes. It\u2019s also essential to ensure they understand how their policies will work and have given you consent to purchase them. These conversations are never easy, but they\u2019re critical for ensuring you get a policy that meets their needs.<\/p>\n To buy life insurance for your elderly parents, you\u2019ll have to show proof of insurable interest<\/a>. That means you must demonstrate that your parents\u2019 deaths would impact your finances. Of course, if you depend on your parents\u2019 income at all, you have an insurable interest. But some other examples might not be as obvious.<\/p>\n For instance, if you cosigned a loan for your father so he could buy a more accessible car, you have an insurable interest because you\u2019d inherit that loan if he passes away. In fact, if any of your parent\u2019s financial responsibilities, like a mortgage or caring for a dependent, will fall into your lap when they\u2019re gone, you have insurable interest and can buy life insurance coverage for your parents<\/a>.<\/p>\n You\u2019ve likely seen your parents\u2019 needs and priorities change as they grow older. Maybe they\u2019ve slowed down or shifted focus from working and taking care of you to spending meaningful time with you and caring for their health. Their financial needs have likely changed too. A life insurance policy can help your parents plan for the future, whatever it brings.<\/p>\n As your parents grow older, their medical needs may become more intensive. They might need in-home care to help them live independently, or they may need to move into an assisted living facility. Some permanent life insurance policies can help you afford these resources when you need them. Permanent life insurance accumulates cash value<\/a> that your parents can borrow from during their lives to pay for medical care or emergencies. You can also purchase riders with some policies that offer coverage for long-term care.<\/p>\n Pay remaining debts<\/b><\/p>\n After your parents pass away, you or other family members could, unfortunately, inherit some of their debts, especially if anyone has joint accounts with them. Even if no one inherits the debt directly, outstanding unpaid loans typically come out of the deceased\u2019s estate. The payout from a life insurance policy could cover any remaining bills, so you and your loved ones don\u2019t have to worry about them.<\/p>\n Funerals, celebrations of life, and other memorial services bring comfort and healing when you lose someone as dear as a parent. However, final expenses often come at a very high price, with funerals costing around $9,000 on average<\/a> in the United States. You and your loved ones might struggle to cover the cost, adding stress during an already painful time. Life insurance can cover not only funerals but also all the expenses that emerge when someone passes away, including burial costs, travel for family members, and reception expenses. The death benefit can even cover estate taxes, which could otherwise eat away at your parents\u2019 estates, and in turn, your inheritance.<\/p>\n Your parents may want to continue caring for their children or grandchildren after they\u2019re gone by leaving a financial legacy. While inheritance funds through a traditional estate are subject to taxes, life insurance death benefits are not. Your parents can leave their beneficiaries with funds for college, a mortgage, travel, and more. They can also choose a nonprofit close to their hearts as a beneficiary and donate their death benefits.<\/p>\n It\u2019s a misconception that older adults can\u2019t receive life insurance coverage. You can choose from an array of policy types to suit your parents\u2019 needs and their budget.<\/p>\n Term life insurance offers substantial coverage for a period you and your parents can choose before applying. Premiums for term life insurance are usually lower than permanent life plans for the same amount of coverage.<\/p>\n Fidelity Life offers older adults between 50 and 70 RAPID<\/i><\/b>ecision\u00ae Senior Life Term<\/span><\/a> policies. You can choose between 10-year, 20-year, and 30-year plans. After the term ends, your parents can renew coverage as needed up to age 95 without reapplying, so premiums only increase based on age requirements.<\/span><\/p>\n Fidelity Life offers term life policies specifically for seniors<\/a>. However, the maximum age for a term policy is 70, so you should look into different plans for older parents.<\/p>\n Whole life insurance is a type of permanent policy, meaning coverage continues through the end of one\u2019s life. Whole life policies accrue cash value over time through a portion of your premium payments. Your parents can borrow from that cash value during their lives to cover sudden medical expenses or other emergencies. Any amount not repaid comes out of the death benefit.<\/p>\n Fidelity Life\u2019s specialized RAPID<\/i><\/b>ecision\u00ae Senior Whole Life insurance<\/a> is available for older adults up to age 85. That makes it a good life insurance policy for elderly parents. With these plans, parents could qualify for up to $150,000 in coverage, depending on age and health. Your parents will not have to complete a medical exam to receive senior whole life coverage but will have to answer some medical questions.<\/p>\n Maybe you\u2019d like to get your parents permanent coverage, but they don\u2019t need a big death benefit. If that\u2019s the case, a final expense plan could address their life insurance needs. Final expense policies provide smaller coverage amounts to cover any end-of-life expenses, though beneficiaries can also use them for other expenses.<\/p>\n Fidelity Life\u2019s RAPID<\/i><\/b>ecision\u00ae Final Expense<\/a> policies offer up to $40,000 in coverage. Policy approval is quick, typically taking no more than a few days, and coverage begins right away. The application includes a medical questionnaire but no exam. Because final expense insurance offers a lower death benefit, it\u2019s a more affordable form of permanent insurance than whole life.<\/p>\n You and your parents may want to avoid health questions altogether if they have complex medical concerns that might disqualify them from coverage. Fortunately, even if that\u2019s the case, they still have a life insurance option. Guaranteed issue policies require no health information \u2014 as long as your parents meet the policies\u2019 age requirements, they should qualify.<\/p>\n Fidelity Life offers RAPID<\/i><\/b>ecision\u00ae Guaranteed Issue<\/a> coverage to seniors between 50 and 85. They can receive up to $25,000 in coverage to alleviate debts and end-of-life costs after they pass away. Full coverage begins after three years, but partial coverage starts immediately.<\/p>\n Now that you\u2019ve done some preliminary research, having a conversation with your parents is the next step in buying them life insurance. It\u2019s important to make sure they consent to a life insurance policy and that you understand their wishes and specific financial circumstances.<\/p>\n Next, you can select specific plans for each parent, as their individual circumstances might differ. The following questions can give you a starting point:<\/p>\n You\u2019ll also have to determine one or more beneficiaries, like you and your siblings, grandchildren, other loved ones, or even nonprofits.<\/p>\n Finally, make sure you or your parents make monthly premium payments to keep the policy active. Missed payments can lead to a lapsed policy, so it\u2019s important to stay on top of them.<\/p>\n Life insurance for older parents can be complex, and it\u2019s never easy to talk to people you love about end-of-life financial planning. Fidelity Life can help you throughout the process. Reach out to one of our licensed insurance agents via phone<\/a> or get a quote online<\/a> to get started.<\/p>\n","protected":false},"excerpt":{"rendered":" As your parents age, you might adopt more caregiving responsibilities, like tidying their homes, taking them to doctors\u2019 appointments, or helping them manage their finances. It can be difficult juggling new financial responsibilities while also planning for your parent\u2019s futures. Fortunately, a life insurance policy can help, even if your parents are in their 80s. […]<\/p>\n","protected":false},"author":2,"featured_media":510281,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-510280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-senior-life-insurance-101"],"yoast_head":"\nWhy should you consider a life insurance policy for your elderly parents?\u00a0<\/b><\/h2>\n
Cover the cost of end-of-life care<\/b><\/h3>\n
Cover final expenses<\/b><\/h3>\n
Help elderly parents leave a legacy<\/b><\/h3>\n
Choosing a life insurance policy<\/b><\/h2>\n
Term life<\/b><\/h3>\n
Whole life\u00a0<\/b><\/h3>\n
Final expense\u00a0<\/b><\/h3>\n
Guaranteed issue\u00a0<\/b><\/h3>\n
How to buy life insurance for elderly parents\u00a0<\/b><\/h2>\n
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