Shopping for life insurance for your parents can be emotionally taxing, and it can also be frustrating and stressful. While finding a good policy is generally pretty easy for younger adults, age and health-related issues can make things a bit trickier when you’re shopping for coverage for seniors.
However, life insurance is essential for all adults, and it is a particularly smart investment for seniors. You probably want to make sure that your parents’ funeral costs, medical bills, and final debts are all taken care of when something inevitably happens, and looking for this coverage now can help prevent you from having to deal with financial strain during a time of grief and mourning.
Although finding life insurance for elderly parents might not be as easy as shopping for other life insurance policies, it is definitely possible to secure coverage. By understanding the best types of life insurance for parents, you can obtain the policy that your parents need.
What is the Best Type of Life Insurance for My Parents?
Term life insurance for seniors is a popular choice for many adults, and younger senior citizens or those who are in good health might still want to look into it. Since many seniors end up dealing with some health issues as they age, however, term life insurance isn’t always a good fit. Term life insurance companies are often much stricter with their underwriting, and they often require medical exams. Not only do they look at the results from a medical exam when deciding whether or not to extend coverage and when calculating a senior life insurance rate, but many of these companies take even minor health issues seriously, particularly with seniors.
Fortunately, there are other great options out there for your elderly parents between age 60 & 80. Burial insurance for your parents or whole life insurance are both great choices, so consider learning the advantages and disadvantages of each.
Whole Life Insurance For Parents
- Whole life insurance on a parent offers a higher face value than burial insurance, so it is a better option if your parents have higher debts or if you are otherwise looking for a higher payout.
- Over time, a whole life insurance policy can gain a cash value in addition to the death benefit.
- Although many companies that offer these policies do require a medical exam, they often don’t pay attention to minor health-related issues. Instead, they typically only focus on major medical problems.
- Whole life insurance is a bit more costly than burial insurance, but the higher premiums can be worth it.
- For many seniors, whole life insurance for a parent with face values between $5,000 and $50,000 are generally an option. Since the money is paid to the beneficiary, the cash can be used to handle any important final expenses.
Burial Life Insurance for Parents
- Burial insurance is typically the best option for seniors who are on tight budgets. Because of the lower face value, the payments are typically much more affordable.
- A medical exam generally is not required for burial insurance. This makes it a solid choice for those with more pressing medical issues.
- As with whole life insurance for a parent, burial insurance policies pay the death benefit out to the beneficiary, which might be you or another family member. The benefit can then be used to cover whatever you deem to be important.
- Unfortunately, some burial insurance policies don’t take effect for 24 months after the coverage is purchased. Some companies do offer coverage without a waiting period, however, so you may want to look for one of these policies if possible.
With either policy, you will need to have your parents present to purchase the policy. However, you should be able to gather most of the paperwork yourself. Then, your parents won’t have to worry about anything until the final policy is being drawn up.
How Can I Buy Life Insurance for My Parents?
Choosing the right policy for your parents is a good way to guarantee coverage without putting them through the stress of finding their own life insurance. Even though you will need them to be present when filling out the final paperwork, you should be able to handle the bulk of the work on your own.