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While it is easy to understand why a parent of young children will purchase life insurance in order to protect income due to the loss of the breadwinner, there are many reasons why a parent or parents of older individuals should also consider carrying life insurance coverage.
In fact, as an adult, the death of a parent can oftentimes create a substantial financial hardship. This is because the adult child or children of a parent who passes away could become liable for that parent's unpaid debts, as well as for their final expenses.
Today, the cost of a funeral, coupled with other related costs, could exceed the $10,000 mark. This is especially likely when you add in the price of one's headstone, burial plot, flowers, and the funeral notices.
If a parent was older, it could be that he or she may have had some uninsured medical or hospice expenses as well. These, too, could fall on the shoulders of an adult child. Any and all of these costs can come at a time when the family is in a state of grieving. The expenses could also pile on to an already financially burdened individual or family, which could make their situation even more difficult.
The proceeds of a life insurance policy on a parent could be a good solution for these potential financial issues. The funds from the policy can provide an adult child with the cash that is necessary for paying off final expenses, as well as other debts that the parent may leave unpaid at the time of their death.
While having a conversation with a parent about obtaining coverage may initially be difficult, it could end up proving to be an extremely valuable financial move - and one in which both the parent and the adult child can find beneficial.
One of the best types of senior life insurance to purchase for a parent could be burial insurance. Burial insurance, also often referred to as funeral insurance or final expense life insurance, can oftentimes be purchased for individuals who are up to age 85 - so even those who are older parents can usually qualify for this type of policy.
The coverage on a burial insurance policy can typically range from between $5,000 up to $50,000 - however, in some cases, a life insurance carrier will provide higher amounts. Because of this, an adult child could easily pay for a parent's final expenses, as well as various other types of debt that would need to be paid off.
Because burial insurance is usually a permanent form of coverage, the amount of the premium is generally guaranteed never to increase. This, too, can be beneficial for an older parent, especially if they are on a fixed income. In addition, permanent policies will also accumulate cash value, so the parent could essentially build a tax-deferred savings for other needs if they choose to do so.
It is possible for an adult child to purchase a burial policy on a parent or parents. The actual process of doing so may vary, however, depending on where you reside. For instance, in some states, it may be required that the adult child obtains the parent's consent prior to taking out the policy.
Even in locales where consent from the parent / insured is not required by law, however, the process of obtaining the insurance coverage will typically go more smoothly with the individual's knowledge.
One reason for this is because there will typically be information that is required from the parent / insured. This will usually include items such as basic contact details, as well as their Social Security number, and general health history.
With many types of burial insurance policies, it will not be necessary for the insured to undergo a medical examination. This can help the parent to be approved more easily - even if he or she has certain health related conditions. In addition, once approved for coverage, provided that the premium continues to be paid, the policy cannot be canceled by the insurance company. This means that the adult child - who will typically be named as the beneficiary - can count on the benefit proceeds when the time comes.
When shopping for a burial insurance policy for your parents, it is typically a good idea to work with an independent insurance agency or entity that has access to more than just one life insurer. That way, you will be able to compare multiple carriers and determine which one will provide you with the best coverage at the best premium price - and you can do so in an unbiased setting.
If you are in the process of seeking life insurance for a parent or parents, we can help. We work with many of the top life insurance carriers in the marketplace today, and we can help you to obtain all of the details that you need regarding purchasing burial insurance for your loved one. We can also help you to compare the various policies, benefits, and premium quotes of many different insurers - and from there to determine which of these will work the best for you and your family's specific situation - without the need to meet in person with a life insurance agent. When you are ready to move forward, get a set of free quotes by filling out the form on this page.
Should you find that you still have any questions regarding how to purchase burial insurance for your parent - or even if you have a question about life insurance in general - please feel free to contact us directly. Our experts can walk you through more detailed information. We can be reached by phone, toll-free, by dialing 541-400-9040.
We understand that it may be difficult to discuss purchasing life insurance with your parent. Yet, having the funds that are needed can help you to provide them with a remembrance that shows them that you care. So, contact us today - we're here to help.