How do I buy life insurance for my parents? As parents live longer and rely more on their children, more and more children are asking about buying life insurance for parents at all ages and stages of their lives. Unfortunately, when a parent dies without life insurance, it is their family who pays the price, literally and figuratively. The direct price includes paying for funeral cost, remaining debts, and memorial expenses. The figurative cost is the stress that goes along with already difficult time, having a financial strain put on family which can distract from celebrating their loved one’s life and cause strife for the family. That is why buying life insurance for parents is becoming an common occurrence as the aging population sometimes can’t work in the payments into their budget. More and more children are purchasing a life insurance policy for parents at a range of ages and stages of life.
How to buy life insurance for my parents?
Many folks are looking into a range of options for life insurance for parents whether it is asking about life insurance for parents over 60 or needing life insurance for elderly parents. Regardless of how old your parents are, the process for buying life insurance for parents is the same. With all life insurance plans, there is an application and approval process followed by finalizing the application and payments being made. The main difference between buying life insurance for yourself versus buying a life insurance policy for parents is the ownership of the policy. When you buy life insurance for parents, you are the owner of the policy.
The insurance company verifies that the owner has a vested interest in the person who is insured. Clearly when buying life insurance for elderly parents, the child purchasing the policy has a vested interest and will be approved for this process by the life insurance company. Usually there isn’t any problem getting approved as the owner of your parent’s life insurance policy. As you go through the mental checklist of how to buy life insurance for my parents, don’t forget to talk with them about their wishes after they die. There are many burial options and your parents’ preferences will help determine how much the death benefit should be.
Buying life insurance for parents over 60
The age of your parents is a factor when you are buying life insurance for parents. Parents in their 60s are often still working and their children are just starting up a family and getting settled into their careers. Often, parents are the ones reminding their children at this stage of life for the importance of having proper life insurance to protect their young spouses and children. With those considerations, it isn’t as typical for children to buy life insurance for parents over 60. More often, parents in their 60s have employer provided insurance and sometimes have term life insurance policies in place. The exception is when you have a parent in their 60s who has been forced into early retirement due to disability or health problems or perhaps some kind of financial hardship has occurred that has left the child better able to help financially with life insurance than their parents.
Then the child would want to consider buying life insurance for parents over 60 when they aren’t able to benefit from employer provided insurance or pay for it themselves. One other situation when a child might buy life insurance for parents over 60 is when the child has discretionary income and wants to secure the future life insurance needs for parents at the lowest possible price. Funeral insurance rates are based on age and health so getting a life insurance policy for parents in place while parents are younger and healthier can save a lot of money in the long run.
Buying life insurance for parents over 70
As parents move into their 70’s, this can be a time when retirement has put parents on a fixed income. Life expectancies are getting longer so it is crucial for retirees to make their retirement dollars last. That is where a child may need to step in and consider buying life insurance for parents over 70. As mentioned earlier, the advantage of getting a life insurance policy for parents in place at an earlier age is that monthly premiums are based on age and health. For parents in their 70s as they enter the stage of life where they are uninsured, if you can get your life insurance for parents started as soon as possible, you will get the lowest rate offered. The monthly premiums for whole life insurance never increase and the policies are never cancelled as long as payments are being made. Buying life insurance for parents over 70 is the most common age group for children buying life insurance for parents.
Buying life insurance for parents over 80
If your parents don’t have life insurance in their 80s, the time to act is NOW. Life insurance for parents over 80 is only offered until they turn 85. Often times, health problems mean that there could be a phase in of benefits or even a 2 year waiting period so it is crucial to get this policy in place immediately. Thankfully the application process is simple and easy which will be reassuring for an aging parent. Buying life insurance for elderly parents over 80 doesn’t have to be a stressful experience because the application has just a few short yes or no health questions and if you know your parents will have trouble being approved, you can even choose a guaranteed issue policy and there are NO MEDICAL QUESTIONS.
As our parents age without life insurance, the responsibility falls on their family to take care of their needs before and after their death. Securing a life insurance for parents over 80 is often a wise investment because usually the death benefit outweighs the monthly payments made and this protects family members from financial strain paying for burial and debts after their parent passes.
Final thoughts on buying life insurance for my parents…
Children buying life insurance for parents fall into many camps. Those considering buying life insurance for elderly parents is a no brainer at their age if they are currently uninsured because who is going to pay for funerals and debts- the children! Why not invest ahead and take off that pressure when your parents die. Or your camp might be considering buying life insurance for parents over 60 which is a wise move if you want to get the very lowest rates locked in for their lifetime. Or maybe you are those in between… Regardless of what age and stage your parent is in, you are making a good move to consider their life insurance needs and step in as needed by buying whatever life insurance for parents that is needed to give you peace of mind in your parents remaining years. It is also a gift to your parents to know their needs will be taken care of in the years they have left with you and as they pass on without you.