About Life Insurance for Aged Parents: Perhaps most people would think that when they are old, it will be really difficult for them to have insurance. It can be a challenge especially for older people or those who are suffering from a medical condition as well as if you are buying the insurance for someone else.
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If you happen to be considering getting life insurance for aged parents, you need to let them know and you have to get their approval. The cost of insurance will depend on different factors. For instance, getting insurance for parents whose age is 85 years old or younger, the price is less. You also have to factor in the type of insurance policy and the coverage.
Do You Need to Get a Life Insurance for aged Parents?
Individuals need good insurance and there are simply many reasons why you should get insurance for your parents. Even if you are no longer dependent on them. Some children would want to talk about it but in reality, things happen. And one of the main reasons why you should get life insurance for your parents is to have a policy that will cover the cost of burial and other related expenses.
The final expenses that you have to pay nowadays when someone dies amounts to about $10,000 since you have to consider the memorial service, headstone, and burial plot. Imagine if you don’t have any life insurance, who will shoulder the cost? This explains why having life insurance is very important. Aside from covering the cost of death and funeral services, having life insurance can also cover unpaid debts. For instance, there might be some people who are still liable for the balance on their credit card, auto loans, and mortgage balance.
There are several advantages that you can get when getting life insurance for aged parents. In fact, the beneficiaries can also use the cash benefit of the insurance policy depending on what is stipulated in the terms and conditions of the contract. With all the benefits that you can get, there is simply no reason why you shouldn’t get life insurance for your elderly parents.
Now the next question is, can you get life insurance for parents? This is a common question. Before you get one, you have to prove to the insurance provider what you call the insurance interesting. This refers to a person suffering from financial loss when the parents die. For instance, if you would be responsible for the financial obligations of your parents, then you there is an insurable interest. If you are also obligated to pay for the final expenses of your parents, it also qualifies as insurable interest.
How to Get Life Insurance for Elderly Parents?
When you have finally decided to get life insurance, you need to take some steps first. You have to determine exactly the coverage you need. For instance, if you want to get life insurance for your parents in order to pay debts then you have to add up the debt amount to come up with the face amount of the insurance policy. The same thing applies if you are considering getting life insurance to cover the final expenses of your parents. In addition, you may also want to have more coverage including medical costs.
How to Get the Best Deal?
With so many options, you can just choose which insurance policy you want to purchase. But for you to get the best rates, you need to compare rates from different companies. This is the only way for you to get a good deal that can give you the coverage you want at an affordable price. Insurance companies vary when it comes to the quotes that they give to their clients. Take the time to research the insurance company and then compare the rates.
Life Insurance for Seniors Who Don’t Have Certain Health Conditions
The next step is to start searching for life insurance which can be quite a confusing task. Keep in mind that there are many insurance companies and different kinds of insurance policies being offered. Senior just don’t have the time and the energy left to sort through the different insurance policies.
If you are buying life insurance for your parents, one of the things that you need to know is the type of life insurance that you have to get. There are life insurance policies where there is no need for health questions. Basically, there are four different types of life insurance which include whole life insurance, term life insurance, burial insurance, and guaranteed life insurance.
Whole Life Insurance
For younger seniors, this is considered to be a good option especially if you have extra money. With this policy, seniors get to have a guaranteed rate of return. Compared to other types of insurance policies, it is the most expensive. For those who are facing uncertain financial circumstances, it is not strongly advised.
If the policy is cancelled due to non-payment, then seniors wouldn’t be able to get the money they put in unless they already hold the insurance policy for more than 20 years.
Term Life Insurance
This is a kind of life insurance that has a limited period of coverage. When the coverage period is up, the owner of the policy has to decide whether he/she wants to renew or let it end. This is different from permanent life insurance which is a long-term insurance policy. There are some who prefer to have term life insurance.
It is low cost and no cash value. It renewable and depending on the insurance company, there are cases where it can be converted into permanent life insurance. However, if you are looking for an insurance policy that will cover the cost of your parents’ final expenses and other financial obligations, this might not be the best option for you.
Another type of insurance is burial insurance. It is also known as a whole life insurance policy where the beneficiary can get $5000 up to $25,000 in benefits. This particular type of insurance gives money for burial and funeral costs. In getting this insurance, there is a need to answer some questions that are health-related but there is no need for a medical exam. Premiums are then collected either weekly or monthly.
Guaranteed Life Insurance
For those who are looking for an insurance policy that does not require any medical exams and can offer insurance to anyone regardless of the health status, there is guaranteed life insurance. With this policy, those who can’t qualify for the other types of insurance policies need not lose hope as this can be another option. All you have to do is to pay the premiums.
Tips on Buying Life Insurance for Elderly Parents
Buying an insurance policy isn’t like just buying an item in a store. You really have to take the time to research and weigh your options. If you are planning to get life insurance for aged parents, here are some essential tips that you can follow.
- You need to know if the life insurance you are getting for your parents is a good deal. How do you do it? When there are simply too many options out there, sometimes it can be quite overwhelming. This explains why it is important that you request for quotes. Before a person reaches the age of 85, the prices of premium are still relatively affordable. As a person gets older, the price gets higher given the same coverage. However, it does not mean that you can no longer get a good deal. When you ask for price quotes, you will notice that insurance companies will give different quotations. Compare the rates and the coverage, if it fits your budget and the kind of coverage that you need then it is a good deal.
- Know the kind of insurance coverage that you need. When getting life insurance for your parents, you need to know the amount of coverage that you can use as a financial safety net. Basically, the idea is, for instance, your mom is living with you and if she only has social security, then it is a very strategic move to get life insurance for her. In a way, it can give you coverage and you can avoid having to shoulder a huge financial obligation that you may have a hard time handling.
- You should know the types of life insurance that are considered to be the most appropriate for your elderly parents. Term life insurance is the most common insurance policy as it has the lowest cost. However, you must also consider the life expectancy of your parents. You wouldn’t want to get a 10-year term life insurance if you need the coverage as long as your parents live. On the other hand, you may want to have a whole life insurance where you can get a quote from a certain age range. This provides coverage within the said time period. How about other options? There is what you call the second-to-die policy which provides death benefit upon the second parent’s death.
Taking Out a Life Insurance On Elderly Parents
Now that you have an idea what type of insurance to get, you need to talk to your parents about it and tell them about your plans for getting life insurance for them. There are providers that require consent and it is much better if your parents know of your intent to get life insurance for them.
When they finally agree, the process is much easier as you can work with them to get the necessary information that you need to be able to get a policy. This includes personal details like driver’s license number, social security number, basic contact information, general medical history among many others.
Once the details are given, the next step is to specifically determine the amount of coverage that you need. If your parents have a huge debt, then you need to get an insurance policy that will cover the debt. Insurance experts advise that you get a policy that is twice than the cost you expect to incur. You can then decide which type of insurance you want to get.
Is it term insurance or whole life insurance? When you have finally figured it all out, you can meet an agent so you can ask everything you need to know if you have additional questions and you can also ask for discounts. Do not go for the first option without looking for other choices. Make sure that you get to really compare the rates. Bring all of the necessary documents to your parents and have them designed the documents.
Having insurance is definitely a good thing. While still young, it is strongly recommended to get a good one when the premiums are still affordable. However, there are cases where you might have to get life insurance for your aged parents. Some may think that it is too late but in reality, it is not. When you get them a life insurance plan, you get to cushion any impact especially if they don’t have any insurance. Although no one wants to anticipate such even, it is definitely important to be prepared for it.