Buying Life Insurance For My Parents: What You Need To Know

Do I need life insurance for my parents? That’s one of the biggest questions that most people juggle with, as they watch the sunset years of their parents. Buying life insurance for parents is very much possible and one of the best ways of preparing for life eventualities.

Whenever a parent dies, survived ones are usually left with unexpected bills that can pose significant challenges. Therefore life insurance might be the ultimate savior when one is most vulnerable, both financially and mentally.

Buying life insurance for parents goes a long way in ensuring peace of mind and shielding against financial responsibilities that might come along upon the passing away of a parent.

Buying Life Insurance for Parents

Step 1: Find out How Much Coverage is Sufficient

Most people take life insurance coverage for their parents as a way of protecting themselves from some of the costs that might come into being upon death. Therefore, while taking coverage, it is essential to consider things such as funeral and burial costs that many at times can clock highs of $10,000.

Therefore, it is essential to get estimates from local funeral homes to help determine the final cost. In addition, it is important to consider medical costs that might come into being while dealing with a sick parent or any debt that they might have. This way, you will be able to determine the right amount of life insurance coverage to take.

Step 2: Find the Right Policy

Life insurance policies come in different forms. While others offer coverage for a specific period of time, others offer coverage for the entire time one is alive. Before choosing between a term life insurance policy and permanent life insurance, it is important to take a closer look at what each plan offers. 

The type of life insurance you settle on should cover all the underlying needs. Therefore, just because a plan is cheaper does not mean it is the best policy. Whole life insurance has proven to be the best life insurance for people above 50 years. The policy comes with a cash value and offers coverage for life as long as premiums are paid. There are also term life insurance plans that offer a return of premium, which means if they outlive the term, you’d get all your money back. 

Step 3: Consent

When taking life insurance, where the policyholder and the insured are two different people, consent is a must. Therefore, you will need your parent’s approval in order to buy life insurance coverage in their name. Consent, in this case, will be in the form of signing the insurance application.

Likewise, you will have to prove insurable interest indicating that you will incur financially upon the insured dying. This is not difficult to prove, especially if your parents depend on you for their upkeep.

Reasons to buy Life Insurance for Parents

Here are a few reasons to get life insurance for your parents. 

Paying for Final Arrangements

By taking life insurance for your parents, you end up relieving yourself the burden of going back to your pockets to cover funeral arrangement costs. In this case, the death benefit paid will cater for all funeral and burial costs.

Funeral costs in the form of funeral home costs, flowers, transportation as well as casket costs can run into thousands of dollars. By taking life insurance coverage, you shift the financial burden to the death benefit. Funeral Plans Stoke are also available online

Cater To Medical Bills

A life insurance policy can come in handy in catering for medical bills should your parents die while in hospital. Depending on the parent’s health, you might end up with large medical bills in the form of hospital stay, as well as medical treatment costs and prescriptions costs. All these medical costs would be well-taken care of with a life insurance policy in place.

Taking life insurance for parents also goes a long way in catering for additional costs that might come into being upon their passing on. For instance, the death benefit can help settle mortgage payments should they pass on with a sizeable mortgage.

Likewise, the death benefit can be used to move a surviving parent when one passé on. In this case, you can use a death benefit the surviving parent closer to you or an assisted community.

Conclusion

Taking life insurance for your parents is a sure way of protecting oneself from expenses that might come into being, once they pass on. The death benefit paid upon death can, therefore, be used to offset medical bills, take care of funeral arrangement costs, as well as take care of a surviving parent.