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Most likely you’re here today because you parent, such as your mom or dad, needs some kind of burial insurance to take care of final expenses.
If that’s the case, you’re at the right place!
Let’s jump right in, and find out how to get life insurance for your parents.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the ultimate guide to getting life insurance for your parents. Enjoy!
Here’s An Overview Of Our Discussion On Getting Life Insurance For Parents:
- Why Get Life Insurance For Parents?
- Who Gets Life Insurance For Parents?
- With Getting Life Insurance For Parents
- Questions To Ask Ahead Of Time Before Getting Life Insurance For Parents
- How To Qualify Your Parent For Life Insurance
- Next Steps
Why Get Life Insurance For Parents?
There are several good reasons to buy life insurance for parents.
1. Your Mom Or Dad Has No Burial Insurance Coverage
I got off the phone yesterday with a lady whose mother is 80 years old, and her term insurance policy had just lapsed. They had religiously paid on it for years and were told that they could renew it.
It turns out they lied to her, and she lost her coverage. She was left completely uninsured. So she called me to help her find a policy that wouldn’t cancel.
2. Your Parents HAVE Life Insurance… Just Not Enough!
Although some of your parents DO have life insurance, they may not have ENOUGH to do the job.
Maybe you’ve talked to your mom or your dad, and they’ve got an insurance policy that they’ve had for years. But it may only cover part of the funeral or cremation expense. These days with burial costs exceeding $10,000 and more, having more burial insurance for your parents makes perfect sense.
Or, your parents have a life insurance plan that terminates like term life insurance, and you believe having burial insurance coverage that WON’T terminate is pretty important.
These are good reasons to take out more coverage on your parents.
3. Mother And Father Can’t Afford To Buy More Life Insurance
Maybe your parents simply cannot afford to buy life insurance on their own.
Maybe Mom and Dad looked into buying life insurance. And once they saw the price, they decided it burial insurance was too expensive.
Here’s the truth…
Literally millions of retired and disabled folks 60 and older barely get by on one small monthly Social Security check.
And I don’t have to tell you – it’s SUPER difficult for many of these people to part with premiums for a life insurance policy.
Are your parents in this financial predicament? If so, this is a great reason to buy Mom or Dad a life insurance policy.
Buying a life insurance policy for your parents is a surefire way to give your parents (and you) TOTAL peace of mind and complete protection from the ever-rising costs of final expenses.
Even if your parents aren’t on a meager retirement income, circumstances arise unexpectedly that warrant a serious consideration of life insurance.
Alabama client burns through retirement to help daughter through rehab.
For example, I talked to a retired sheriff in Alabama a couple of years ago. He had a good pension, plus a hefty amount of savings.
At that time, he couldn’t make sense of purchasing any life insurance on himself. He felt his financial condition made life insurance unnecessary.
An unexpected turn of events proved how wrong he was…
Unfortunately, his only daughter ended up in rehab because of pain killer addiction. And because a good father will stop at nothing to help his children, he willing paid the price to rehabilitate here.
Guess how much that cost?
He paid in excess of $80,000!
The GOOD news is that rehab finally work (although it took several stays at rehab to cure her).
The BAD news is that my client ran through his entire savings.
Trust me… he NEVER imagined that money would be used for such a circumstance! What father would think that would happen to him?
Yeah, he had a good pension. But his living expenses matched his pension.
The end result? He had nothing left over to save towards the funeral. Nor did he have any money in savings leftover to GO towards the funeral.
Moral of the story? Life throws curve balls… and doesn’t care how old you are when the curve ball is thrown.
And purchasing a life insurance policy on your parent is the perfect solution to concerns of running out of savings. It’s the best way to “play it safe.”
4. Your Parents Have Difficult Financial Obligations
Buying life insurance to cover your parents uncovered financial obligations is a good idea.
Does your mom or dad have car loans? Credit cards? What about a mortgage?
Once your mom or dad passes away, you can use the life insurance payout towards paying these obligations down.
Doing so eliminates those debts so that they don’t pass on to you. And may allow you to KEEP the car or home, too.
5. Your Parents’ Health Is Not Good
Age has a way of gradually bringing us all down.
Maybe Mom or Dad has seen better days. Aches, pains, and disease are setting in. Or worse.
When we have serious health scares, it’s only natural that we think twice about things like our health that we commonly take for granted.
In truth, getting life insurance for parents is not something most of us think about daily.
Usually a serious health event precipitates the need to have life insurance in place on a parent.
Has that happened to your mom or dad?
If so, take advantage of the event, and begin looking for a burial insurance policy.
It may or may not be entirely necessary to have it…
…But I’ve never met a bereaved decline a $5,000 or $10,000 check.
It’s always welcomed, and always put to good use.
Who Buys Life Insurance For Parents?
Let’s shift gears and discuss some common motivations for kids and grandchildren who decide buying life insurance for their parents is a good idea.
1. Children Who Don’t Want To Assume Their Parent’s Debt
We previously mentioned debts like credit cards, loans, and a mortgage.
Perhaps you don’t want to assume paying Mom and Dad’s debt.
Maybe you’ve co-signed on a loan with your parents, and you want to have a policy in place to cover in case that obligation rolls up to you.
Getting life insurance coverage on your parents can solve this problem.
When Mom or Dad passes away, a death benefit is paid out to the beneficiary (typically to you).
Whatever you do with that money is up to you.
And if you don’t like the idea of paying off your parents’ mortgage or car loan with money out of your own pocket, a life insurance policy goes a long way in relieving you of that financial burden.
2. Children Who Can’t Pay Funeral Expenses
What happens if paying your parents funeral expenses becomes YOUR responsibility?
Perhaps you’re worried about paying you mom or dad’s final expenses.
Worse, maybe you’re worried about asking your brothers or sisters to pitch in to do their part.
Can you say DRAMA?
As a life insurance professional, I’ve talked to numerous folks who had parents suddenly pass, leaving the siblings the argue over who pays what.
In a perfect world, you’d like to think your brothers and sisters are on good terms… That you all love each other… that you’ll split everything down the middle… that everything will be FAIR and “fine.”
If you think that’s the case, I have oceanfront property in Kansas to sell you…
The truth is this. Money problems has a way of bringing out the WORST in people.
Plus, you can’t account for the financial situation your brothers or sisters are in.
Sure, they can be financially stable today. But what about tomorrow?
You don’t want to go down this route! I’ve seen it time and time again where money issues like this tear families apart.
It doesn’t have to be that way, and for a small premium you can ensure that it isn’t.
3. Children Who Want To Avoid Estate Disagreements
Another reason to have a life insurance plan on a parent is to solve potential estate disagreements between family members.
84-year old Georgia grandma wants to arrange things squarely when she passes away
I met with an 84-year-old, fixed income grandmother the other day.
She had a large tract of land in rural Georgia. A couple hundred acres, I think.
And in her death, she wanted both her son and her grandson to equally split the land between them both.
The problem was her son lived on this tract of land already. He took care of the land and loved it.
However, the grandson had zero interest in the land. Having it would cause him financial difficulty coming up with the the money to pay taxes.
Sure, he could sell the land. But large tracts of land in rural Georgia take a LONG time to sell. And the only way to sell land fast is to sell it way below what its true value is.
The solution I proposed was to take out a large life insurance policy on her as a way to “split” the inheritance.
Her son would get ALL the land outright. And the grandson would get a large life insurance death benefit as his portion of the estate.
So in her wisdom, the life insurance policy became the solution, and would retain the relationship between father and son, long beyond her demise.
Here’s the thing… your Mom or Dad does NOT want their “stuff” to come between you and your siblings.
Let’s say your mom lives in her house with you or one of your siblings.
Perhaps all the siblings want the house when she dies, and there’s a disagreement as to how the house is going to be split.
Should you own the house equally? Or just sell the house? If that’s the case, who gets what? What if a sibling put more time and effort into rehabbing the house before the sale? What if one wants to sell the house faster than another?
Consider the following.
Maybe it’s best to settle an estate concern like the one mentioned with life insurance.
The sibling who LOVES the home… gets the home. And the one who’d prefer to “take the money and run,” gets the life insurance pay out.
You can see how a life insurance policy can solve these estate considerations where there may be disagreements.
Buying life insurance for the parents can definitely help solve these kinds of familial problems. Moreso, it removes the risk of losing a relationship with somebody you love.
Issues With Getting Life Insurance For Parents
So, you’re thinking that buying life insurance on your parents may be a good idea.
However, there’s a few circumstances you need to be prepared for ahead of time to make this process as easy as possible.
You really need to make sure all these issues are wrapped up BEFORE you pursue getting coverage on your parents for life insurance.
Avoiding these details will result in future problems arising that may prevent the whole deal from going down entirely!
So let’s go into detail about all 3 of these issues so you can better understand what your options are.
1. Consent To Take Out A Life Insurance Policy
The first concern is gaining consent from your parents. Even though you’re purchasing the life insurance policy for your parent, the law requires consent from the insured.
Health records are private. HIPAA rules say that individual health matters are explicitly private, and insurance companies must have the authorization of the insured in order to run medical records to apply for coverage.
What does this mean?
While you can certainly make the premium payments, in order for an insurance company to medically approve parents, they need access to your parents health records.
Bottom line… if your parent does NOT authorize access to the medical records… there’s no way you’re going to get a life insurance policy on your mom or dad.
Your parents won’t be eligible to even apply. So you’ve got to get their permission when it comes to getting a policy on them.
The only exception to that is if you have power of attorney. If you have power of attorney, there are some plans called guaranteed acceptance life insurance plans that will allow you to take a policy out.
Now, there are some restrictions.
Generally speaking, no-questions asked life insurance usually requires two years to pass before the policy is in full effect. This is regardless of your parents’ health. And you need to provide power of attorney paperwork to prove that.
So it’s not the best-case scenario, but that’s one way around it.
Ultimately you really need to get with your parent, let them know what you’re going to do and why you’re going to do that. That’s really the preferred method.
Can you take out life insurance coverage on your parent without them knowing?
No. That is against HIPAA privacy rules.
If you forge their signature… even though you’re related to them… you’re committing fraud.
Don’t do that! Just get them to sign off and agree to be insured.
What if your parent is not close by to sign off on the policy?
Let’s say your parent lives in Pennsylvania, and you live in North Carolina.
Can you still take out life insurance on them?
Most life insurance policies for parents can be done digitally via email or through the mail. Some companies even allow verbal signatures, meaning your parent can consent to a policy with a verbal signature administered by the life insurance company.
Can I add my parent to my existing life insurance policy?
You may wonder if it’s possible to add your parent to your employee life insurance coverage or existing family life insurance policy.
The short answer is no.
Why? Same reason why you can’t take out a policy without their consent. HIPAA rules protect each individual’s personal privacy. Meaning parents have to sign off and consent to any medical information request.
The same goes with employee-based life insurance programs.
None allow insurance coverage outside of immediate family members, like spouses and kids.
Bottom line: As long as the parent consents to the policy… or if you have power of attorney… there ARE life insurance and burial insurance coverage options available.
Let’s face it.
Your parent has lived a LONG time.
They’ve been independent for most of their life, and they may feel a bit prideful about matters of personal finance.
My experience dealing with kids looking for parent life insurance is this… You have to anticipate this as well as how to work around some of the most common pride-related issues.
It’s understandable – many parents do NOT want kids responsible for their personal financial obligations.
Decent people feel responsible for their own circumstances.
There’s a sense of pride that comes from independent living. Many older people who are older have his sense because their generation did whatever it took to survive.
They DID take care of themselves, and surely did NOT ask anybody for any help.
It’s important to have this discussion about paying for their life insurance as soon as possible.
The goal is to make sure they understand your reason why you want to buy life insurance on them. As well as expressing your concerns, making it completely clear to them that you’re just trying to help.
Some parents may feel that you’re trying to take advantage of their death to enrich yourself.
You want to make sure you REALLY explain to your parent WHY you’re buying life insurance coverage.
You want to tell them that you’re concerned that you won’t have the money to pay for a funeral. You’re also worried that there may be drama caused from siblings trying to figure out who’s going to pay for what. If this plan isn’t there, it may cause permanent damage to the family.
If you present this to your mom or dad this way, it really gets them thinking about the impact of taking a little tiny policy out like this and how it’s really more than just money.
It’s really a way to ensure peace of mind.
Remember, your parents MUST personally consent to the life insurance product. This is why you want to take the time to explain your concerns. That way they know what to expect and are better “sold” on following through.
The third concern is finding a plan that will actually qualify your parents for life insurance.
As a life insurance broker, I can tell you that health DOES matter to some extent when looking for life insurance coverage.
The good news is that there are insurance products out there that will cover regardless of the health situation, if your parents’ health isn’t so great..
So make sure you have an accurate idea as to your parent’s health ahead of time.
You need to have a good idea where they stand on their health so I can give you an accurate assessment of what kind of options for life insurance for your mom or dad are available.
Does my parents’ age matter?
Age is actually a little bit more important to consider than health.
If you have a parent that’s over 90, there are no life insurance options anymore.
However, if your parent is between 50 and 90, there are plenty of burial insurance options. As long as they fall in that age range, regardless of health, there are options out there.
Understand this. Expect your parent to answer basic health questions. However, a detailed medical examination will probably not be required. But health questions are something that you’ll find is going to be part and parcel to qualifying.
Questions To Ask Ahead Of Time Before Getting Life Insurance For Parents
1. Who is paying?
One question to ask ahead of time before buying life insurance for your parents is, “Who pays what?“.
While I assumed earlier that you may be paying for your parent’s life insurance, that isn’t always necessarily the case. Your parent can certainly pay for it, too.
The insurance company doesn’t really care who pays as long as there is a familial relationship.
2. How much coverage does my parent need?
That comes down to what financial obligations you want covered.
Just want enough for a cremation? Then you’ll need less than if your parent was getting buried.
Are there larger obligations like a mortgage or loans to pay off? Obviously you’re going to need a larger policy.
So think in advance what your goals are. Think about what you want covered, and what expenses you’ll most likely experience. Then come up with a rough estimate of what you think is absolutely necessary, and have your parent apply for that amount of life insurance coverage.
3. Who do you want the beneficiaries to be?
Beneficiary choices are the responsibility of the owner of the policy. Usually the owner tends to be the insured, too.
However, you can actually set this up where you are the owner of the policy… IF you want full control over decisions like beneficiaries.
Ask yourself this… “Who do you want to have the money to pay for your parents’ obligations?”
That’s something you have to talk to your parents about and see what their opinions are.
4. Does your parent have to take an exam?
Most of our life insurance policies for parents use what’s called simplified issue underwriting.
Here’s how it works.
We look at basic health history. We access medical records and prescription records to to determine insurability.
Thankfully, there’s no examination or physical involved for most types of life insurance polices we offer.
How To Qualify Your Parent For Life Insurance
You may be wondering what is the best life insurance for my parent? I’m going to give you a brief explanation here of what the options are, and I’ll tell you my opinion.
You’ve got term insurance, whole life, and guaranteed acceptance.
Term Life Insurance For Parents
Basically, term insurance lasts for a period of time before terminating.
That’s right! Term insurance TERMINATES.
That’s where term gets its name.
To make matters worse, sometimes the rates go up through the roof, but usually term insurance is designed to be outlived, and to ONLY be covered if death occurs earlier than expected, and larger obligations (like mortgages) must be covered.
Generally, I do not recommend term life insurance to my clients buying coverage for their parents.
Why? Because MOST of my clients want coverage that does NOT cancel and will pay a guaranteed death benefit.
With term life insurance, you always run the risk of outliving the coverage. And the only circumstances where it makes sense to own term life insurance is when a temporarily obligation must be covered if you die before the obligation is paid off.
Therefore, there are some occasions where term life insurance for parents make sense. But it is pretty rare that we consider it.
Check out some sample rates below to see what term life insurance may cost someone who is healthy.
Term Life Insurance Coverage – 10 Year Term – $100,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $250,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $500,000 in Coverage
Term Life Insurance Coverage – 10 year Term – $1,000,000 in Coverage
Unlike term life insurance, whole life insurance is designed for PERMANENT, life-long insurance protection.
With whole life insurance, the rates never go up, and the coverage never goes away due to age or health.
As long as you pay your premiums, you keep your coverage no matter how old you get. And many times we can get full coverage started from the first day. Even on parents with advanced age and with some health issues.
Whole life insurance makes PERFECT sense when a child feels having a guarantee of life insurance coverage is critical.
This is why we commonly suggest whole life to cover burial and final expense costs, since both kids and parents agree death is GUARANTEED to happen.
Check out some sample rates for whole life burial insurance below for a generally healthy person.
Rates For $10,000 In Burial Insurance
Rates For $25,000 In Burial Insurance
$150,000 Whole Life Insurance, Life Pay
$250,000 Whole Life Insurance, Life Pay
Guaranteed Issue Life Insurance
Guaranteed acceptance life insurance is our “last ditch” life insurance option when a parent is too ill to qualify for a plan that asks a series of health questions.
What’s the catch with a life insurance plan that does NOT ask health questions?
The big limitation with this is there’s no natural death coverage for the first two years of the policy.
Now, once you pass the first two years of the policy being in force, your parent is fully covered.
BUT… obviously you want your parent covered as quickly as possible. Ideally from the very first day the policy is taken out!
Rest assured… guaranteed acceptance life insurance plans are a last resort policy to consider, only when nothing else will work.
See sample rates of no-questions asked life insurance coverage below at different monthly rates.
Guaranteed Issue Life Insurance Rates
$50 a Month – Guaranteed Universal Life Insurance
$100 a Month – Guaranteed Universal Life Insurance
$150 a Month – Guaranteed Universal Life Insurance
How To Qualify My Parent For Life Insurance Coverage
1. Stay Away From “Television Life Insurance”
You’ve got different options in selecting a burial insurance policy.
It’s likely your mom and dad are constantly seeing advertisements for life insurance on TV between watching westerns and The Price Is Right.
Here’s the kicker with these plans…
They are usually not only the MOST expensive life insurance available… but also the WORST value available to their clients.
Try to get a second opinion before buying a “TV Life Insurance Program.” Why? Because many plans will force your parent to wait two-years before being fully covered for natural death, even if they are in good health at the time of application.
Sometimes they’ll even sneak in price increases every 5 years and even cancel your parent for life insurance at age 80 like Globe Life does with it’s term life insurance product.
2. Avoid captive agents
Did you know there are different types of life insurance and burial insurance agents?
We’re not all exactly the same, and working with the WRONG type of agent can cost you in coverage and price bigly!
The first type of agent you can do business with is called a “captive agent.”
Captive agents usually specialize in life insurance, but they only represent one company.
JUST SAY NO TO CAPTIVE AGENTS!
Why? Captive agents almost always charge you more for their life insurance products than you can find elsewhere.
Even more important, they can’t shop for the best value of coverage.
This means if your parent has health issues… even minor issues like diabetes or blood pressure.. a captive agent may put you in a WORSE plan than what you could find through an independent agent, like me.
Just Say YES To Independent Insurance Agents
We here at Buy Life Insurance For Burial operate as independent insurance brokers.
My company works with 10 to 15 different companies.
Why is this important?
Working with an independent agent gives you the best bang for your buck. This is especially true for your parents who likely are well into their 50s, 60s, and beyond. Differences in premiums between life insurance companies can be tremendous!
How does it work?
A broker takes your parents’ unique health information, and shops it with the companies he represents to see who offers the best deal.
Many times it ends up being the best deal for the consumer. And definitely BETTER than what the captive agent typically offers.
Sample Life Insurance Quotes For Parents
Let’s take a look at some examples of life insurance quotes.
We’re going to look at quotes for people 65, 75, and 85 years old for $10,000 in coverage for a basic burial plan.
While we can go higher or lower in sample prices, the idea here is to give you a starting reference on what cost you can expect to pay on a parent’s life insurance policy.
NOTE: To give a personal quote is dependent on your parent’s age and health, what prescriptions they take, and how much coverage you get for them.
Obviously you can see that it takes a lot of work, and a personalized quote, by definition, is unique to you.
What you’re looking at here is just a sample selection of different life insurance companies that are available as well as their corresponding monthly premium.
$10,000 Whole Life Insurance, 65 Year Old Male, Non-Smoker
This is for a 65-year-old male for $10,000 in coverage. So again, which one you would qualify for is totally unique to you, but you’re seeing a range of between upper $40s to mid $50s.
$10,000 Whole Life Insurance, Female Age 65, Non-Smoker Rates
For a female who is age 65, for $10,000 in coverage at level rates, you’re looking at between upper $30s to mid $40s depending on your health.
$10,000 Whole Life Insurance, 75 Year Old Male, Non-Smoker
A male age 75 for $10,000 in level coverage can expect to have somewhere in the range of mid $80s to right around $100 a month.
$10,000 Whole Life Insurance, 75 Year Old Female, Non-Smoker
Females, nonsmoker rates, $10,000 is going to be between mid $60s to mid $70s for $10,000.
$10,000 Whole Life Insurance, Age 85, Male, Non-Smoker Rates
Males age 85 for $10,000 of level coverage is roughly going to be in the $170 range to the $230 range depending on what the person can actually qualify for regarding level of coverage.
85 Year Old Female, $10,000 Whole Life Insurance, Non-Smoker Rates
And last but not least, females age 85 for $10,000 in coverage is going to range between the $120s to $170s, again, depending on health, not smoking, and level of coverage.
So those are just some quick sample rates for $10,000 in nonsmoking rates for 65, 75 and 85-year-old males and females. Again, I just wanted to give you an idea of what the level of coverage would run for. Your prices are totally unique to you, but hopefully you can kind of see what to expect.
After you figure out a rough estimate of your budget and what you want a life insurance policy to accomplish for your parents, here are the next steps.
1. Get a buy-in from your parents.
Explain to them why you want life insurance coverage on them, why it’s important, and what the consequences are if you don’t get life insurance coverage on them.
Nobody can make the case better than yourself.
Explain to them the fear that you have if this isn’t in place, and what the consequences could be for you personally, financially, and the relationship between your siblings.
A candid conversation with Mom and Dad is the BEST way to get them to drop the pride issue, and buy into what you’re suggesting.
Once your parents are on board, call me up at 888-626-0439.
I can ask basic health questions about them to get a feel for where they’re at, and then I can give you an idea of what your parent can qualify for regarding life insurance or burial insurance.
After our initial conversation, assuming you’re the payor, the next step is for me to contact the parent and have them complete a qualification interview and application with me.
And that’s it!
No examinations, no unnecessary physicals.
You now have the peace of mind knowing that your fears are taken care of (assuming they are approved, of course).
If you feel strongly that getting a policy is really important and you’re ready to talk to me, you can do one of two things.
Send me a message by clicking the contact box at the top of the page.
If you just want to cut to the chase and see what your options are, call me at 888-626-0439, and you’ll speak to me live.
Do leave a voicemail if you don’t reach me. I’m very busy all day talking to people like you and helping them and their parents with life insurance.
It only takes 5 or 10 minutes to figure out what your parent will qualify for, and then you can decide how you’d like to proceed from there.
If that sounds great, we can proceed. If not, no big deal.