Life Insurance Policies for Parents

In most cases, you can purchase life insurance policies for your parents.? The most popular types of policies for parents are term life insurance, whole life insurance, and second to die policies.? Here is some of the information you?ll need to know if you are a child searching for your parent/s.

Ownership of Policy: One of the first things I ask the child when he/she calls me is who would be the owner and payor of the policy.? In some cases, children are simply calling on behalf of their parents who are not internet savvy, and are doing nothing more than helping their parents, who don?t know how to buy life insurance, with the quoting and application process, but that the parents will be paying for the policy.

In other cases, you have children who will be the owner of the policy, pay the premiums, and also be the beneficiary of the death proceeds.? Usually this is okay as long as the child can prove an insurable interest. This is 100% legal, but will require approval by the insurance company.

An insurable interest means that the child would be somehow financially affected by the death of his or her parents.? So if your parents have a big mortgage on their home, and you don?t want to inherit their debt, life insurance may be in order.? Or if you are responsible for your parents funeral and burial arrangements, life insurance may be used for this.

How Much Life Insurance Can I Purchase on My Parents?

The trick is to apply for a reasonable amount of coverage to protect you from financial hardship.? The idea is to be indemnified, or made whole? not to get rich off your parents? death.? So if your 81 year old mother is living with you, and lives off social security, and provides no financial benefit to your family, and has no debt, you would not, for example, be approved for a 1 million dollar life insurance policy.

In most cases, a $100,000 life insurance policy for parents is approved without hitting any barriers.? Beyond this, financial justification will be required.

Requirements to Purchase Life Insurance on Your Parents

Your parents will first, need to be aware that the policy is being taken out on them.? It?s impossible for them not to know, since they will need to sign the application as the ?primary insured? or ?primary applicant?.? Most policies will also require a medical exam.? It?s really not too complicated.? You just complete an application, (sometimes the medical exam), and then wait for approval.

Types of Life Insurance for Parents:

Term is the most common type of insurance sold today, because it offers the lowest cost for level premiums during the duration of the term.? You must consider your parents? life expectancy, however, if you?re considering term.? You don?t want to get a 10 year term if you actually need the coverage for as long as they live.

In the latter case, whole life insurance, or its little sister, universal life insurance (a lower cost policy offering coverage for life), may be more suitable for you.? You can get quotes in our quote form on the right to age 100 or 121, which are guaranteed universal life insurance policies.

Another popular choice for parents is a second-to-die policy.? As the name indicates, this policy only pays out one death benefit, upon death of the second parent.? This type of insurance is popular in combination with estate planning and life insurance trusts, but not necessarily.

For the best term life insurance prices on your parents, or any other type of life insurance, it?s best to speak with a knowledgeable professional, who can discuss your options and pricing with you.? You may get a quote using our form on the right or by calling us at 877-996-9383.

Source: http://termlifeinsurancemales.com/types-of-life-insurance/life-insurance-policies-for-parents/

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