Almost everyone agrees that it helps to have life insurance. But the fact is that only approximately 60% of Americans avail of its benefits. The reasons for this are the perceived complications of the whole thing.

Another big reason preventing more people from insuring themselves is that families avoid speaking on the topic. It involves death, and a discussion doesn’t take place until it’s too late. A senior life insurance claim would be worthwhile for you to tackle the issue in a head-on manner.

Why parents should get life insurance?

All people want their parents to have a long and prosperous life. But the fact remains that death still is one of the absolutes of life. You and your family need to adopt a matter-of-fact approach to insurance. With a factual outlook, you can avoid the emotionally charged issue of insuring. Try to pick a moment when everyone is happy and in good spirits.

The following tips will help you buy insurance for your parents when all parties are ready for it:

1. Ensure that you have the consent of your parents

The first thing you are going to need to ensure your parent’s life is consent. The expression of such consent finds the form of a written agreement. But such consent is mandatory whenever you are buying insurance for someone else.

The consent helps insurance companies to ensure that the facility isn’t used to pursue ill intentions. Indeed, it is dark to think in such a way, but there is plenty of darkness in the human mind. There are plenty of historical precedents for such incidents. The consent helps to protect insurance companies from such occurrences. Besides, it is also unethical to buy insurance for someone without their permission.

This written consent presents itself as a signature on the insurance application forms. The signature forms the legal basis and expresses that your parents are aware of the insurance application. Some firms even call up insured people and interview them over the phone. The insurance company and insurance types decide on this.

2. Keep in mind that often only an immediate family member can insure someone

State laws vary on the people who can buy insurance for a particular person. The general rule of thumb is that only immediate family members can do it. Usually, persons with a financial interest in a person’s life can only insure them. But in most such cases, they are not allowed to own the insurance policy themselves.

For people whose parents fall within the low-income group, you can buy insurance for a reasonable amount. One can pay for medical bills and burial expenses for a parent through specific policies.

The burial insurance cost usually is quite affordable. It is important to know the concept of an insurable interest. Insurance firms use this instrument to decide whether to let you buy insurance for your parents. It refers to the fact that the death of the insured person will result in a financial loss.

3. Determining the coverage amount

You need to use some paper and a calculator to determine the ideal coverage sum. This bit of math will help you estimate the coverage amount you need for your parents. You need to take into account things like mortgage and debt. It would be wise to set aside $50k-100k for medical expenses, which are standard for older people. Also, keep in mind the costs associated with a proper funeral. $10k would be a suitable amount for this.

If you can, it would be best to reserve a burial plot from before. You also need to take into account the wishes of your parents. You need to ask them if they prefer cremation or burial.

It is a bit morbid to talk about such things, but it is necessary. Some insurance plans cover the mortgage as well. So, enquire into that if it is relevant to you. Also, consider credit card debt. In this particular respect, moderation is desirable. You need to convince that the death benefit sum is reasonable. Remember that financial profit is not the aim of life insurance.

4. Carefully think out who will own the insurance

When an insurance policy is issued for someone and it is owned by someone else, the insurance company looks for insurable interest. If you want to buy life insurance for your parents, you must demonstrate an insurable interest. You should keep in mind that being an offspring is not reason enough for the firm.

You have to prove that their death will have effects on your finances. If you can show this effect convincingly, then only can you ensure your parents. Owning insurance will give you the privilege of changing certain rights and privileges. Owning insurance policies lets you modify things like:

  • Beneficiaries
  • Amount of Coverage
  • The billing payments

It isn’t necessary to notify the insured person of all such subsequent modifications. The policy owner may not authorize communicating such changes to the insured person. The insured person should understand this clearly.

5. Make sure that you decide who is going to pay the premiums

The term “payor” refers to the person making the actual premium payments. The payor is the person who issues the payment checks. It is important to note that this person may be someone other than the owner of the insurance. So, children can buy their parent’s insurance and pay for it themselves. What matters is to pay the premiums on time. Payment lapses during the active period of the policy could make it null and void.

6. Decide who is going to be the beneficiary

The beneficiary of insurance depends on the particular assets owned by an insured person. Accordingly, it might be the spouse, child, or next of kin. Many affluent people leave behind significant sums to churches as a donation.

Different organizations carrying out charitable work also often are such beneficiaries. At the time of the insurance application, the beneficiary must show insurable interest. When the policy becomes active, these details might be modified. These terms should be clear to all concerned and especially to the insured parents.

7. Determine the life insurance coverage type

There are different types of life insurance that you can buy for your parents. These are as follows:

  • Term life insurance
  • Permanent life insurance
  • Whole life insurance

Can you buy life insurance for someone who is dying?

With the proper information in your hand, buying your parent’s life insurance need not be that hard. We hope these great tips will help you to get your parents’ insurance that fits their needs perfectly.

These days almost all insurance providers have a web presence. It is a great idea to collect initial information from such web resources. They let you compare the different offers from different companies.

Additionally, pay heed to the ratings and reviews of the company as well. Look for companies that have correctly trained insurance agents who are keen to sell and help. Remember to clarify all doubts before you sign on the dotted line.


Nicolas Desjardins

Hello everyone, I am the main writer for SIND Canada. I've been writing articles for more than 12 years and I like sharing my knowledge. I'm currently writing for many websites and newspapers. I always keep myself very informed to give you the best information. All my years as a computer scientist made me become an incredible researcher. You can contact me on our forum or by email at [email protected].