Purchasing Life Insurance for Elderly Parents: What You Need to Know

With 30 percent premiums, the U.S covers the world’s largest insurance market today! About 60 percent of Americans have life insurance coverage.

But how do you convince your parents that it’s time to get a life insurance cover? Discussing with them about life insurance attracts other essential topics such as inheritance and details of their proper send-off.

Having this talk with your elderly parents is never easy for most people. But with the right conviction, you should help them understand the benefits of buying life insurance. Here’s what you need to know if you’re considering life insurance for your elderly parents to cover final expenses. 

What Do You Need When Buying Life Insurance for Your Elderly Parents?

The satisfaction that comes when you buy life insurance for your elderly parents is overwhelming. But can you walk into an insurance company and purchase life insurance without your parents’ consent? No!

Your parents should know that you’re buying them life insurance. That’s why you need to talk to them on the essence of your move. They should consent by typically penning their signature on the relevant documents.

You should also have proof of insurable interest. Your preferred insurance company needs to know the financial impact of your parents’ or how it affects you financially.

After consenting to your quest, it’s now time to shop around for the best insurance rates. In other instances, they may opt to apply for the insurance alone. Therefore, give them the necessary support by researching insurance companies that befit them the most.

Types of Life Insurance Quotes for Elderly Parents

Buying life insurance for your parents depends on factors such as their health condition, health, and the desirable premium option. However, here are the top three life insurance coverage options that may befit your elderly parents:

1. Instant Issue Life Insurance Policy

It’s advisable to get this type of life insurance if your parents need a quick life insurance policy. Here, your parents don’t have to do any medical exam. The application process is fast and efficient, and they’ll get coverage in a matter of a few minutes as the underwriter reviews it for a final word.

Its coverage amount varies from $2,500 to $40,000 depending on the age and health condition of your parents. The amount also depends on the desired amount that you’re willing to pay for the life insurance policy. Get your quote today from a credible company like Morison Insurance Brokers Inc.

2. Final Expense Life Insurance Policy

Its coverage amount varies between $2000 to $100,000 depending on your preference and parents’ general situation. Besides, applicants don’t require any medical exams.

They should only answer relevant health questions. This gives insight and coverage of medical bills and any other expense that the insurance should cater for in case of death. Compare the best life insurance quotes from a reputable insurable broker and pick one that befits your budget. 

3. Guaranteed Issue Life Insurance

This type of life insurance policy is very affordable. It’s the most popular out of the other three options. Besides, it covers more than just the overall funeral expenses.

Also, life insurance is flexible in that you can buy it regardless of your parents’ age or health condition. So, this is the best life insurance policy that you should buy for your parents if you’re working on a tight budget.

Its coverage amount is between $2,500 to $40,000. You can find a more flexible payment scheme at Morison Insurance Brokers Inc.

Why Get Life Insurance for Your Elderly Parents?

Death is ruthless and often comes when nobody is expecting. Therefore, it may lead to colossal funeral expenses while sending off your parents. The case is worse if you’re the sole breadwinner of your family because it’ll get you into unnecessary debts.

The best way of ensuring that you give your parents a proper send-off is by buying them a good life insurance policy. It saves everyone’s time and money. Besides, it also allows you to spread funeral costs to a manageable level.

However, it’s important to shop around before picking on the preferred policy. It gives you the chance to find the right deals that won’t hurt your pocket. Moreover, it ensures that you’ve got a better idea of the available life insurance options.

Before buying the life insurance policy, you need to know your goals. How much are you willing to spend? What final expenses do you need to cover?

Getting a policy that ranges between $10,000 to $50,000 will meet most final expenses. Ensure that the insurance policy also caters for any medical bills since most older adults go to the hospital frequently for health restoration.

However, if your goal is to cover beyond the final expenses, you should go for a better life insurance policy. For instance, your parents may want you to inherit a house that has high mortgage rates. Therefore, getting an insurance policy with higher death benefit may help you to pay for the mortgage should they pass on without completing the payment of the house.

It’s advisable to go through all available options before settling on a given life insurance plan. You must prioritize the well-being of every family member should your parents pass on. Funeral expenses can be very costly, and thus, you should always consider buying a reasonable life insurance policy for your elderly parents.

Remember to do quick math and establish the amount that you’re willing to pay for the insurance policy before choosing the right scheme. Also, avoid making rational decisions that’ll hurt your budget. Only pick the option that’s favorable to you financially.

How Do You Choose the Right Coverage Amount?

Now that you’ve clear goals on the type of coverage, should focus on getting the right coverage amount.

Most final expenses go up to $10,000 per person. The cost may go higher depending on the cumulative medical bills. It’s, therefore, crucial to only pick a plan that will cover medical and funeral expenses.

If you can’t afford a higher coverage, go for those with lower death benefits. You can pay most of these types of life insurance policies with monthly premiums. However, this can leave you in considerable debts if you use the death benefit amount to cover other expenses.

If you want to protect an inheritance when your parents die, you should choose life insurance options with higher death benefits. It will help keep your finances in order as you try to pay the balance of the mortgage loan. Besides, it prepares you financially to look for more income-generating avenues to pay for your inherited home when your parents die.

It’s essential to look at the bigger picture of the whole situation. Like, know the amount that your parents have in their savings plus any impending debt. It’s also critical to know any revenue-generating activities that your parents have been using to raise money to pay those debts.

Well, you can only know this if you talk them out of their comfort zone. You should be well-conversant with finance details so that you don’t chew more than you can handle.

To avoid getting in trouble with banking facilities, as your parents to accompany you to the bank as you try to get a clear picture of their financial situation before their demise.

What Determines the Payable Coverage Amount?

Coverage rating varies in different companies. But your parents’ age contributes significantly to determining the payable premium amount. Most insurance companies also consider family history, health, and individual hobbies.

Some insurance policies need a medical exam to determine the amount that you should pay for your parents’ life insurance policy.

Other common rating factors that insurance companies consider include tobacco prevalence, gender, alcohol usage, area of residence drug usage history, weight, and height of the applicant. These factors contribute to determining the life expectancy of your parents.

Any insurance company should have a workable rating formula to establish the payable premium amounts. Therefore, they usually employ qualified professionals to help calculate reasonable life insurance cost. They should have a precise method that explains every detail of the payable life coverage amount.

You’ have the right to know how those factors affect the overall price that you should pay for the life insurance policy. Always ask for clarification of unclear points within the insurance policy. Your preferred insurance agent should help you out with detailed information on any life insurance policy.

Start Now!

There’s no better way of having secured funeral expenses than buying a life insurance policy. Generally, if you start an early life insurance plan, you’ll pay lesser amounts in the later years of your parents’ lives.

Therefore, it’s crucial to convince them to take a life insurance cover as soon as possible. However, it’s not too late if they haven’t enrolled for a life insurance program. With this information, you can easily persuade them!

You must ensure that they find workable life insurance policies that won’t mess your finances. Check out our blog to shop out for the best life insurance policies that fit your budget.

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