Although buying life insurance (level term or permanent) for your parents is not a pleasant experience, it may be a necessary one. If for no other reason, making sure your parents have a life insurance policy in place, will help alleviate your worries about taking care of their burial and final expenses.
If your parents still have outstanding debts, a life insurance policy will also help guarantee the estate can pay the debts upon their death.
When it comes to buying life insurance for your mother and/or father, you will have to display to the insurance company what is referred to as "insurable interest". Put simply, insurable interest is a requirement that shows that you will suffer some sort of financial loss in the event of your parents death.
In most cases, it is not difficult for an adult child to demonstrate insurable interest when it comes to insuring their parent (mother or father), and placing themselves as the beneficiary.
Once this is established, you need to determine how much coverage will be necessary and what type of coverage will best serve your needs, and those of your parents.
In the broadest sense, you can choose from permanent life insurance or level term life insurance. With term insurance, your elderly parent (mom or dad) will only be covered for a set period of time. With permanent insurance, on the other hand, the coverage lasts throughout the remainder of your parent's life. Permanent life insurance is not as affordable as term insurance.
In addition, if your parents are quite old, term life insurance may be purchased to last until beyond youre the life expectancies of your parents. This is not to say that one is definitely a better choice than the other it is a very personal decision that must be based on your unique circumstances.
The amount of coverage you need also depends on the overall purpose of the life insurance. If you are simply looking to have funeral and final expenses covered, an insurance policy with a small pay out of around $10,000 may be sufficient for your needs.
On the other hand, you may want a larger policy that can be borrowed against in case of medical expenses or that will help pay off other expenses in the event of your parent's death, for example, the dreaded estate taxes.
Costs will vary depending on your parents health status and age. Obviously, the younger they are, the cheaper the policy will be. Also, if they have health issues like diabetes, high blood pressure (hypertension), have or had cancer, are overweight, plus many more conditions, the average cost of coverage will be higher.
Here are some average costs for a 10 year policy for elderly women, non-smoker, and in fair health:
|65 years of age||$39.71||$38.10||$66.92||$81.06||$148.75|
|66 years of age||$42.48||$42.59||$73.45||$87.59||$162.31|
|67 years of age||$45.36||$47.77||$80.05||$93.32||$177.60|
|68 years of age||$49.00||$53.32||$86.99||$100.47||$194.25|
|69 years of age||$53.14||$59.10||$96.57||$111.48||$221.40|
|70 years of age||$58.19||$67.20||$107.20||$128.25||$247.12|
|71 years of age||$62.91||$75.15||$118.23||$151.38||$274.05|
|72 years of age||$68.43||$85.50||$132.21||$175.05||$306.15|
|73 years of age||$75.89||$95.67||$151.99||$197.22||$352.83|
|74 years of age||$84.18||$108.15||$170.55||$ 224.46||$399.15|
|75 years of age||$93.67||$115.60||$193.59||$256.31||$454.50|
Thinking of buying a life insurance policy on your father, but you are not sure if you can, or how to go about doing it? We can help you with your questions and with price comparisons.
Buying a life insurance policy for your mother not a pleasant task. But, it may be a necessary thing to do. Maybe you need to pay estate taxes with your mother's passing, or pay for burial expenses. No matter the reason, we make it easy to compare rates from many different insurance companies.
Summarizing, it does not matter if your parents are over 50 years of age, over 55, over 60, over 70, over 75, or even over 80 years old. It is still possible to insure them if they are healthy and don't suffer any major health issues. Of couse, if they are closer to 80 than 50, it won't be as affordable.
So, if you have questions like: "Can I get life insurance for my parents?" or "How can i get life insurance for my parents?", we hope your questions were answered.