Though you might not be looking forward to buying insurance (duration or permanent) for your parents, it may be necessary. If your parents have a life insurance policy for no other reason, it will help to alleviate your concerns about their burial and final costs. If your parents still have outstanding debts, term-life insurance will also help to ensure that the estate can pay the debts upon death.
You’re wondering if you can actually buy a term-life insurance policy for your parents, and the short answer is yes. It’s like buying a life insurance policy for your parents – with some key differences, as you buy for yourself. Now the question is, what type of life insurance should you choose? Then the simple answer to this question is permanent life insurance. As your elderly parent (mom or father) will only be covered for a certain period of time with term insurance. On the other hand, the coverage lasts for the rest of your parent’s life with permanent insurance. Permanent insurance is not as cheap as term life insurance.
Furthermore, if your parents are quite old, life insurance can be purchased to last longer than your parents ‘ life expectancies. This does not mean that one choice is definitely better than the other – it is a very personal decision based on your unique circumstances.
The level of coverage you also need depends on life insurance’s overall purpose.
If you just want a funeral and final expenses to be covered, an insurance policy with a small payment of approximately $ 10,000 to $ 15,000 may suffice for your needs. On the other hand, you may want a larger policy which can be borrowed for medical expenses or which will help to pay other expenses in the event of the death of your parent, such as dreaded property taxes.
The bottom line is that you can definitely buy or can cover insurance for your parents. The method isn’t much different from buying yourself a life insurance policy, but there are a couple of factors. Before making any final decisions, consult a financial adviser and your provider. Compare your options with our comprehensive life insurance guide once you are ready to find a provider and policy that meets your needs.
We are here to provide all the information required and support your decisions. We understand your concerns and worries, you only have to book an online consultation and we are here to help you.