How to Buy Life Insurance for Your Parents
If you are thinking about buying life insurance for parents but you aren't sure how to bring it up, then chances are that your parents are thinking about it too.
Life insurance can sometimes be a sensitive subject among family members because you might not want to
bring up something as morbid as death and the burden that sometimes comes with it. If your parents don't have any
life insurance coverage, or if they don't have enough, then you should first do some comparison shopping to get an
idea of how much it will cost.
You have a couple of options: Term life and Whole life
Term life insurance will provide coverage for your parents for a certain
amount of time. For example, a 10 year term policy will provide a death benefit for 10 years. After the
term, the policy expires or it can be renewed at a higher rate based on their current age. Whole life insurance is permanent coverage that will last for the rest of their
life, assuming that premiums are paid. This type of coverage costs more, but it also provides level premiums for
life. Get a free quote for term life and whole life today.
How much life insurance do your parents need?
Most children simply buy a small policy to coverage the costs of a burial, but if your parents have debt, unpaid
taxes, or other costs, you may need to get a larger policy to handle those final expenses. Learn more about how to determine how much life insurance your
Who is going to pay the premiums?
Once you have determined how much life insurance your parents need and you've shopped around for rates, you'll
have to decide whether your parents can afford the policy or if you are going to be the one to pay. It's not
uncommon for children to pay for a life insurance policy for their parents. The children are usually the ones who
have to deal with the financial burden of a funeral and other final expenses, so many are happy to pick up the cost
If you pay, you must prove an insurable interest
Unfortunately, there are people who try to take out life insurance on a person so they can end their life and
collect the money. That is why insurance companies want to make sure that there is some type of insurable interest
between the owner / payor of a policy and the insured. Insurable interest simply means that a person will suffer
some type of financial loss in the event of the insured's death. As a child, you can definitely claim an insurable
interest because the death of your parents means the burden of funeral costs and final expenses is left on you.
The first step when shopping for life insurance coverage is to get a free no
obligation quote and compare multiple quotes from the nation's highest rated carriers. Remember that all
life insurance carriers have different rates, so it pays to compare.