Although buying life insurance for your parents (term or permanent) is not something you look forward to, it may be necessary. 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 typical 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 (over 70), term life insurance may be purchased to last until beyond 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 benefit of around $10,000 to $15,000 may be sufficient for your needs and it will be low cost.
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 - a policy like this will cost more.
Costs of getting life insurance on your parents will vary depending on your senior parents health 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), heart disease, have or had cancer, are overweight, plus many more conditions, the average cost of coverage will be higher, and getting cheap rates no longer will be possible.
Here are some average costs for a 10 year policy for elderly women, non-smoker, in fair health:
|65 years of age||$39.63||$38.20||$66.92||$81.16||$148.75|
|66 years of age||$43.58||$43.59||$73.65||$87.75||$163.20|
|67 years of age||$45.24||$47.78||$80.15||$93.22||$177.67|
|68 years of age||$49.10||$53.25||$86.99||$100.57||$194.22|
|69 years of age||$53.13||$59.10||$96.56||$111.54||$221.50|
|70 years of age||$58.29||$67.20||$107.20||$128.15||$247.22|
|71 years of age||$63.91||$75.25||$118.13||$151.13||$274.25|
|72 years of age||$68.53||$85.56||$133.22||$175.25||$306.35|
|73 years of age||$75.89||$95.45||$151.98||$197.20||$353.82|
|74 years of age||$84.28||$108.25||$170.75||$ 224.56||$399.15|
|75 years of age||$93.67||$115.60||$193.59||$256.12||$454.50|
What kind of rates can your parents get? CLICK HERE to find out!
Thinking of buying a life insurance policy on your elderly father, but you are not sure if you can, or how to go about doing it? We can help you with all your questions and with the best possible rates.
Buying a life insurance policy for your elderly 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.
When you hear people mention "guaranteed life insurance" or "no medical exam life insurance", do you know what they are referring to?
This is a guaranteed issue life insurance policy that will be issued to you, in most cases, despite any health issues you may have or had. The problem is, the premiums will be much higher and the death benefit lower - usually 10 to 50 thousand. This is not an affordable or cheap policy.
It's the most common policy issued to elderly people and it's often used to pay for final expenses such as funeral expenses, medical bills, or other outstanding debts. It's the preferred policy for parents over 70 because it's easy to get and does not need a visit from a nurse or medical professional.
Summarizing, it does not matter if your parents are over 50 years of age, over 55, over 60 (seniors), 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 course, if they are closer to 80 than 50, it won't be as affordable to get them coverage.
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.