The senior population is growing by leaps and bounds leaving many of their children wondering about a life insurance policy for parents. In a perfect world, all the money needed is available for burial needs when your parents die but in reality, most people don’t have the means to pay for a funeral when a loved one dies. This leaves options such as borrowing money or less preferred burial plans. No one wants the final memories of their loved one to be the struggle of paying for a memorial service that honors their life. That is why considering a life insurance policy for parents is what many children of seniors are doing.
AGES- How your parents age affects their life insurance needs
50-60 years old
Parents between 50-60 years old have often just lost their term-life insurance coverage that was protecting their family during the child-rearing years. Now that they are without the life insurance that would have helped with income loss during those years, the main consideration is getting enough life insurance to pay for burial and perhaps some loss of income if the breadwinner of the family were to die. Often times children choose life insurance plans in the amount of $20,000 to 50,000 due to the longer life expectancy and chance for inflation to affect the needed final expense monies.
60-70 years old
For seniors between 60-70 years old, the best life insurance policy for parents at those ages will ensure that funeral expenses are paid for and any final expenses that the family might want covered such as small debts or the legal expenses associated with paperwork needs. This means that a typical burial insurance plan would be between $15,000-25,000.
70-80 years old
Children seeking a funeral insurance plan for their parents between the ages of 70-80 need to act quickly if parents are without life insurance at this age. Unfortunately, life expectancy is around 71-73 years old so plans purchased during these years are coming at a needed time. The family will be financially responsible if parents cannot leave enough money to pay for burial, memorial services, payoff debts, and other associated final expenses. To ensure you aren’t burdened financially when your parents die, a whole life insurance plan will be the perfect solution for knowing the final expenses will be paid.
Over 80 years old
ACT NOW- many companies stop offering options for a life insurance policy for parents when they turn 85 but a handful of companies go to 89. Unfortunately, the older your parent, the more risk and cost associated with the life insurance plan. However, it is something where you are prepaying a monthly premium to ensure you aren’t having to pay out a huge lump sum for funeral costs and other expenses when your parents pass. Another consideration is the peace of mind you are giving your parents for them to know they won’t cause a financial burden to you after their death. Click here for more information for life insurance over 80.
STAGES of Health that Impact Life Insurance Options
Approvals and monthly premiums for any life insurance policy for parents is determined by their age and health. The premium preferred coverage is available at any age for those who are in good health. The application is a simple process with some general questions and a short list of yes and no health questions. This medical profile is what determines the plan your parents are approved for. Applicants with great health have DAY ONE immediate coverage available meaning as soon as the first payment is received, the death benefit would be paid out if your parents die.
Minor health problems
Most seniors have some minor health problems. Thankfully, 90% of applicants are approved for the preferred coverage and receive the DAY ONE coverage. Minor health problems usually don’t interfere with getting this premier level of approval. It is reassuring for the children and parents alike to know the plan is in effect immediately upon the first payment.
Severe health problems
For children whose parents have had severe health issues, this doesn’t have to prevent them from getting life insurance into place so that they know that final expenses would be paid for upon their death. In fact, the more health issues your parent has had, the more important it is to apply for a whole life insurance plan to cover their funeral costs. For the 10% or so of clients who aren’t able to get immediate coverage, there are plans called guaranteed issue plans that allow for all applicants to be approved. They are more expensive with a 2 year waiting period but they still do the job of helping children put in place a life insurance for parents that will protect them financially when the time of need comes. These 2 year waiting period plans are called guaranteed issue life insurance.
Past health problems
Parents with past health problems are in a unique category. This is where using a broker to purchase the life insurance policy for parents that you are considering would be beneficial. A life insurance broker specializes in the burial insurance process and works with numerous companies rather than just one company. A company such as Assurance Life would be able to look at the past health problem your parent has had and place them with the company most likely to approve them for immediate coverage or with a company that doesn’t raise the rates for whatever surgery or diagnosis they had in the past. This knowledge can save you thousands of dollars on your parents’ life insurance plan.
Our parents have done so much for us… if they aren’t able to provide their own life insurance, it is a loving and wise thing for their children to get a plan in place for them. Not only are you giving your parents peace of mind, you are protecting your own finances knowing their funeral expenses and other final bills will be paid for. A life insurance policy for parents is not just an insurance policy for parents, it is an insurance policy for the children too.