When we purchase life insurance for ourselves, we do so to protect our loved ones from any financial problems when we pass. However, when a parent dies, the surviving loved ones need to pay the bills and may not have adequate resources to pay for their parents’ end-of-life expenses.
This includes medical expenses, hospice care, funeral expenses, and more. In such situations, it makes sense for you to purchase life insurance for your parents. Here’s what you need to know about purchasing the best life insurance plans for your parents.
Can You Get a Policy for Parents Without Their Consent?
Typically, no, you can’t. You may find it difficult to talk to your parents about purchasing a life insurance plan for them. You’re not alone in this, and it’s normal to face difficulties conversing with your parents about life insurance and their final arrangements. However, doing so is essential for financial and practical reasons. 89% of adults over 40 found discussing end-of-life wishes meaningful.
Make it clear to your parents that you’ll proceed as per their preferences. Discuss how they would prefer to be remembered and determine the amount you’ll need for their final arrangements. However, never purchase life insurance for parents with major or minor concerns about the chosen policy.
Help them understand the necessity of the policy clearly and accurately resolve any doubts they have before making the purchase. Talk to your insurance provider to customize the plan per your parent’s preferences before purchasing the plan.
Related Article: Can I Take out Life Insurance for Someone Else?
What’s the Ideal Coverage Amount?
This will depend on several factors, including:
- Your parents’ total debt
- Monthly expenses/medical bills
- Type of funeral services they prefer.
Funerals typically cost about $9,000 and aren’t usually affordable at short notice. Therefore, you’ll need to pay for a substantial part of the funeral expenses yourself.
You can purchase a final expense insurance plan to cover your parents’ end-of-life and funeral expenses adequately. This policy is specifically designed to help cover end-of-life expenses, including unpaid medical bills, arrangements for the funeral, and any other final expenses. Your insurance provider can help you find the appropriate coverage amount to suit your needs.
How Much Will It Cost?
Life insurance premiums are calculated using several factors where the age and overall health of the insured and your preferred coverage amount are the most significant ones. Generally, term insurance is more reasonably priced. However, you may not qualify for it if you’ve got any major pre-existing conditions and need to take a medical exam. Whole-life policies typically have a higher premium but offer benefits that term policies often don’t, such as cash value and faster claim payouts.
Also Read: Myths About Life Insurance That Could Cost You in the Long Run
Affordable Life Insurance Options for Parents
Certain forms of whole life insurance, such as burial insurance, specialize in small face life insurance policies. These help you budget accordingly when taking steps to secure your family’s financial future, regardless of your financial situation. Therefore, to minimize your life insurance costs, try buying life insurance early on before your age or health affects your premiums. You can customize your plan as per your needs as you grow older.
Buy Life Insurance for Your Parents with Weaver & Associates
Whether you want to purchase life insurance for your parents or whether you are a parent wanting to purchase adequate life insurance for yourself early on, Weaver & Associates is always there to help. Contact our insurance experts today to get your personalized life insurance plan at affordable prices.
Also Read: Key Questions to Ask When Getting Life Insurance as Parents