Before you can purchase life insurance for your parents, you will first be required to prove that you have what is considered “insurable interest”. Insurable interest shows that you, as their child, will suffer some sort of financial loss in the event of your parent’s death.
In many cases, it is not difficult for an adult child to demonstrate insurable interest when it comes to obtaining life insurance for their mother, father or other legal guardian. Once you have shown you do have insurable interest, you will be able to place yourself as the beneficiary.
Once you have established insurable interest, the next step is determining the amount of coverage that you may need, and the type of coverage that will best serve your individual needs and those of your parents. The two main types of life insurance are term life insurance or permanent life insurance.
If you choose term life insurance, elderly parents will only be covered for the amount of time set forth in the insurance policy you enrolled for. If your parents are older, it may be difficult to find term life to last beyond their life expectancy. On the other hand, if you purchase permanent insurance, the policy will last throughout the remainder of your parent’s lives.
You will also need to consider the amount of coverage that will be necessary to cover any debts, as well as pay any final expenses. If you simply need financial assistance with funeral and final expenses, an insurance policy of $10,000 or less may be sufficient to cover your needs. However, if your parents have a lot of medical expenses or a large amount of debt owed, you should consider a larger policy to meet your financial needs.
Costs of buying life insurance for your parents will differ. Remember that premiums are chosen based on existing medical condition as well as age. If your parents are older and less healthy, your premiums may be higher. You can use our form to obtain a free life insurance quote that will provide you with a better idea of expected costs.
You can also consult with our insurance advisors at 1-800-963-6405 for assistance with finding a policy that meets your needs.