Have you ever thought about life insurance for parents? Do your parents have their final expenses planned out? Most baby boomers are living longer and many are outliving their savings. As long as you have a direct interest in the life of the person in question you can take out a life insurance for parents policy on the parent. In order to do so however, it is important that you know the basics of where to start.
To take out life insurance for your parents you will need:
Where to find life insurance for your parents: The easiest place to start when shopping for life insurance on your parents is to start with the person who you bought your life insurance for parents from. If your parent is healthy, and consenting to the process, purchasing insurance on him/her should be relatively easy. The process will involve both parties signing on the application, possibly a medical exam, and then waiting for approval. There are companies who offer affordable life insurance for smokers as well, so don’t let this stop you from getting the coverage you deserve. If the policy is over 150,000, justifications will have to be proved as to why this amount is necessary on behalf of both parties. Make sure to obtain quotes from several companies, such as Banner Life or New York Life Insurance before making your final purchase decision.
Term Life Insurance for your parents: This is the most popular form of insurance being sold at the moment but mostly for younger folks as it has a shelf life. The reason for its popularity is low monthly payments. However, if you are expecting your parent to live longer than the term this is not the way to go, another product such as whole life or universal life is the way to go.
Whole Life Insurance for your parents: This kind of insurance is better in the case of not knowing the longevity of the individual. Whole life is the same premium every year for the person in question and there is a savings component as well. This is sold with or without an exam.
Universal Life Insurance for your parents: This is a flexible premium product which contains a low premium as well as a savings element which is tailored to the needs of the policy holder with differing years. This type of policy is usually more affordable than whole life.
Second to Die Life Insurance for your parents: This is another alternative to whole, term and universal. This insurance pays out in the event of the second death in a couple and is part of estate planning generally. its life insurance for parents.
Key Questions to Determine Needs:
Who will own the policy?
What is the life expectancy of the person in question?
Will the Parent or the child be paying for the policy?
What are the key needs of the owner/payor?
When planning and shopping for life insurance for parents is important to review the questions above. If the child is merely seeking a quote or assisting the parent buy the insurance then the needs are different for the policy holder than if the child is taking out a policy on the parent.
Life expectancy, size of the estate as well as financial needs long term all play a key role in determining what kind of insurance is necessary for your parents. Also there may be outlying factors in the health of the parent such as blood pressure, heart issues, cholesterol, etc. In some cases with these predetermining factors other ideas for insurance may be necessary and should be discussed with an independent life insurance broker.