Final Expense Insurance for Parents

Written by AssuranceLife.org

More and more middle age children are finding themselves considering whether they should buy final expense insurance for parents. With people having their own children at an older age, a common occurrence in society these days are families where children are caring for their parents while they still have their own children living at home. The financial strain of caring for the generation above and below you can cause worry and concern about how they will pay for the expenses that come with a parent’s death when they are already having trouble with the everyday cost of living.

With seniors living longer than ever, many families are figuring out how to balance the expenses of retirement needs, cost of living, managing expensive health conditions and sending their own kids to college. The parents feel frustrated as well not to be able to guarantee that their final expenses will be paid for upon their death because their own fixed income can’t afford to pay for burial insurance to protect their children from the financial cost of their funeral and debts. Many adult children are solving this problem with paying for final expense insurance for parents. Call us at 800-517-0810 for instant final expense quotes.

What is final expense insurance?

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Final expense insurance is a whole life insurance plan designed to pay for the final expenses that a person has when they die. Those are usually burial costs, any debts owed, and sometimes extra money left to family members. This is different from the type of insurance purchased when someone is leaving family behind who is relying on their income to live or care for children still at home.

Commonly, empty nesters and seniors consider having final expense insurance because their financial needs have changed in that season of life. Other names you might hear for final expense insurance are burial insurance, funeral insurance, and whole life insurance. Many of the terms are self explanatory but sometimes people don’t understand what whole life insurance means. Two types of insurance are term life and whole life. Term life is an insurance policy that has an expiration date. Often young married couples or those starting a family will get a 20 or 30 year term policy so that the needs of their family are met if a death occurs. After that time, people often shift to whole life insurance. The reason for the name whole life is that this policy covers you for your WHOLE LIFE as long as premiums are paid.

This makes sense as an empty nester or senior aged citizen because rates are based on age and if you had to renew the policy often, the rates would go up each time. With whole life insurance, the rates are guaranteed the stay the same as long as the payments are made. That is reassuring when life expectancy is now almost 80 years old and you wouldn’t want rates to continue to rise at a time your income is going down. This is especially true when the children is buying the whole life insurance for their parents. Having a set monthly premium is one of the most appealing features of final expense insurance for parents. Assurance Life is able to find the most coverage at the lowest rates for children getting final expense insurance for parents. Free quotes are always available to get you started. I understand how life insurance works but what is different when you buy final expense insurance for parents?

Most people are familiar with the process of getting some type of life insurance- filling out applications, answering health questions, medical exams if it is term life, choosing amounts of coverage, keeping up with increasing cost of living, and all that goes into a typical life insurance application. Often the impression people have of what it is to get life insurance KEEPS them from acting on behalf of their parents because it feels like that process would be even more complicated to go through for aging parents. The good news is that getting final expense insurance for parents is a relatively easy process.

Let’s compare the process of the term life insurance process people are used to with the whole life insurance process you would have for your parents.

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TERM LIFE VS. FINAL EXPENSE INSURANCE FOR PARENTS

Several page application —- Short 1-2 page application
Complicated options for death benefit —- Simple options for death benefit amounts
Plan expires and has to be renewed —- Plan NEVER expires
Premiums raised upon renewal —- Premiums stay the same- never increased
Medical exam with bloodwork —- NO MEDICAL EXAMS
Complicated health questions —- Short list of yes or no health questions
Must have face to face meeting —- Can be completed online or over the phone

So it is a simple process to buy burial insurance for your parents which protects you from having a financial strain upon their death. Often parents would like to provide this blessing themselves for their children. Depending on their financial ability to pay, it is possible that you can set up the policy for them but they can make the monthly payments themselves. Or if they aren’t financially able, that is all the more reason to get them insured so that you aren’t paying over $10,000 in final expenses upon their death when you could have let an insurance company pay that for you.

Things to know if a child buys final expense insurance for parents

There are two possibilities when you set up burial insurance for your parents. One is that you are helping them through purchasing and signing up for the policy themselves. This is very common. With aging parents, they are reassured when their adult children take a look at the options with them, make sure enough insurance is purchased, handle the details, and give the AOK about the final decisions. In this case, the parents are the policy holder. The policy is written in their name, the parent is the insured person for the whole life insurance policy, and the parents are responsible for making the payment each month. The child would often be named as the beneficiary and that is the extent of the role that the child plays in the final expense insurance plan.

The second possibility is that the child is the one who would like to sign their parent up for the funeral insurance and is also taking the financial responsibility. The only legal requirement in this case is that it is shown that the child has a reasonable interest in insuring their parent. This is always true in a parent-child situation because there is a direct relationship between the person starting the policy and the person being insured under the policy. This is called the OWNER of the policy and the INSURED. With a child-parent situation, the child is the owner of the burial insurance plan and the parent is the insured.

The sign up process looks a little different in that the parent still has to complete the application as the insured and agree that they want their child to start the whole life insurance policy on their behalf. The child is then the responsible party for the monthly payments and is listed as the owner of the policy. In cases where the parent just can’t afford burial insurance, both the child and parent have peace of mind knowing that the final expenses will be paid for out of the death benefit upon the parent’s death. Since the child would have been responsible for those expenses when their parent dies, they are able to budget this amount as a monthly expense rather than being hit with thousands of dollars in various bills with funeral expenses, final debts to be paid, and other arrangements and expenses that result from the death of a parent.

How do I decide on a policy plan for my parent?

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Usually when children are buying final expense insurance for parents, they have experienced the longer process of getting term insurance for their family or maybe they don’t have any life insurance experience because it is a benefit through their employer. Either way, looking into burial insurance when you still have kids at home is usually a new process for most. The best way to be sure you are getting the most coverage for the lowest premium with a reputable company is to use a broker. Brokers have access to numerous companies while insurance agents are usually aligned with just one or two companies. This means a broker works for YOU, not the insurance companies. Assurance Life is a broker who works with nationwide companies such as Mutual of Omaha, AIG, Gerber Life, Family Benefit, and more. With so many companies, we know the niche that each one has and where your parents would get the most coverage based on their age and particular health conditions. There is a lot that the insurance companies consider- medications, prior health problems, current diagnosis, age, and weight. Assurance Life is able to get quotes from multiple companies and compare them to find the best final expense insurance for your parents.

Get your FREE QUOTE or call now with any questions you might have. 800-517-0810

About AssuranceLife.org
About AssuranceLife.org

Assurance Life works with individuals nationwide to secure the best life insurance rates. With access to top rated insurance companies, we always find the lowest rates regardless of medical conditions, age, or budget.

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