Yes, you can get a life insurance plan for your parents but if you think you can pull it on them as a surprise, just know that it doesn’t work that way.
Getting a life insurance plan for your parents is a thoughtful gesture especially if they’re worried that you might experience a financially hard life when they are no more.
Also, you’ll be doing yourself a lot of good because once this policy kicks in, you’ll be protected if your parents pass away.
But before you begin the process, you need a lot of information about how getting your parents insured, works.
Can I insure my parents?
This is where the talking begins, you have to sit with your parents and discuss your plans of getting them insurance coverage.
You can begin this by asking them the right questions. Know if they already have an insurance plan and if it’s still working.
Again, verify if they’re in debt, how big it is, and how long it has lasted.
This time is the right time to ask them questions about their will. If they have one or not and if they do, who is in charge of it?
They can also give you every other information that will be helpful to you in the event of their passing. For example, they can give you the details of their financial plan and status, including their banking details, if they deem it necessary.
Additionally, all the information from your parents will help you to decide on the best insurance company to use.
Say you finally pick an insurance company, they will like to speak with your parents before drawing their plans and verify them from their end.
How will the insurance plan serve me and my parents
An insurance plan for your parents is beneficial in many ways, especially for parents with adult children who are not yet financially stable.
Now, one of the very beneficial features of policies like this one is the end goal which includes having a lump sum of money as the beneficiary benefits in the event of their passing.
To begin with, the money you get from this policy can help you to offset your parent’s financial issues like paying back their debts or any loan they took out and could not pay back. This way, you won’t inherit their debt.
Again, insurance money can help you to plan their funeral when they pass.
You can sort out all the monetary issues that may arise when your parents pass away. The whole plan is never to leave you hanging and dry with a broken heart in the event of your parent’s passing.
What questions can the insurance company ask my parents?
Your preferred insurance company, in turn, will have a session with them. They would want to know how healthy your parents are and if there’s an underlying condition or a pre-existing illness.
They also ask them about their age. All this will help the provider decide on what best policies to offer your parents. If they are too old and sick the provider will offer them a befitting plan.
What type of plans can you buy for your parents?
The decision regarding the type of insurance coverage to buy lies with you and your parents.
You will get to choose between term insurance or whole life insurance.
Term life insurance will cover them for a specific period of years because it has an expiry date. You may decide to run the plan for ten, fifteen, twenty, or thirty years.
Should your parents pass away while the insurance plan is still ongoing, the payout will go to the person paying the premium all these years.
Furthermore, a whole life insurance policy may be a better option for your parents. So, if you all decide on a whole life insurance plan, it’ll cover your parents for the rest of their lives.
Not just that but also, it can help them save up through the cash value feature and also have beneficiary benefits. In the event of your parent’s passing, the insurance company will pay out beneficiary benefits to you.
However, if your parents are already old and sick, the insurance company will charge you a higher premium because they see it as risky coverage.
Can I get a life insurance policy for my parents without their consent?
Well, you can’t pull such surprises on your parents. You may be the kind that likes surprising people and gifting them things, but parents’ insurance cannot fit into the picture.
You need their full consent and suggestions and also, they will be part of the final decision-making. Again the insurance company will need to speak with them to know what they need and how to cover them.
We know this may not be easy to discuss with your parents for some reasons but, it is very important because they have to be comfortable with the policy besides, you are doing it for them and not for anyone else.
How much will my parent’s coverage cost?
There are so many things to factor into this policy. Firstly, their age is a determining Factor. Also, their general health plays a huge role in the cost too.
Parents with pre-existing conditions may require more coverage, which leads to a higher premium.
Aside from that, the type of life insurance plan you want to get can affect the cost as well.
Term life insurance is always cheaper but with fewer benefits, and whole life insurance costs more with more benefits.
That is why it is important to pick out a good insurance company that can give your parents exactly the protection they need at a reasonable premium amount.
Life insurance is a great gift you can give to your parents. It will give everybody in the family peace of mind and help your parents focus more on the family and other more important things in their old age without worrying about money and what to leave behind for their children in the long run.