Can I get insurance for my parents?

BUYING BURIAL INSURANCE FOR PARENTS

Many seniors have the means and the willingness to buy elderly insurance, such as Burial Insurance, and leave no financial liabilities for their dependents and loved ones. However, in some instances, our elders may not be in a position to purchase this insurance themselves. For example, they may be afflicted by a severe disease or simply may not have the financial means to pay insurance premiums. In such instances, you, as a dependent, *may be able to purchase elderly insurance that covers your financial expenses upon the passing of your parents. *NOTE: Legal requirements to purchase insurance for another person vary from state to state.

The passing of a loved one results in significant expenses associated with the burial, unpaid bills, and legal and professional expenses related to wills and property. For example, burial expenses such as a casket, a vault, body preparation for viewing, and a funeral service, can easily exceed $7,000. Fees and other expenses could take the cost well above $10,000. Therefore, purchasing insurance to cover such expenses makes sense. All you have to do is prove that you will be financially responsible for such expenses upon the passing of your elders. In legal terms, you have to prove that there is an insurable interest between the insured person (say your parent) and the policyholder (you).

You have several elderly insurance options to choose from, based primarily on the health of the insured person (your parent). You could choose from Term Life Insurance, Burial Insurance, or Graded Benefits Burial Insurance.

Term Life Insurance (for healthy seniors)

Key features:

  • Medical examination required, to prove that the insured is in good health
  • Insurance for a fixed period or Term (5, 10, 15, 20 years, etc.)
  • Insured covered up to the age of 85 (depends on insurance company guidelines)
  • Premiums increase towards the end of the Term
  • Many seniors outlive the fixed term so look for a policy that can be converted to whole life insurance
  • Consider purchasing Burial Insurance also, should the senior outlive the Term

Burial Insurance (for healthy seniors)

Key features:

  • No medical examination required
  • Insured person is covered for life
  • Premiums are locked-in and do not change
  • Moreover, cash value increases over time
  • If the insured is healthy, then you receive full benefit the day after you pay your first premium
  • Coverage cannot be canceled as long as you pay your premiums on time
  • Proceeds can be used for burial costs and other end-of-life expenses

 

Graded Benefits Burial Insurance (for seniors with health problems)

Key features:

  • No medical examination required
  • Insured person is covered for life
  • Premiums are locked-in and do not change
  • Policy increases in cash value over time
  • You typically only get partial coverage for the first two years, and the full insured amount only in the third year of the policy
  • Insurance company cannot cancel coverage as long as you pay premiums on time
  • Proceeds can be used for burial costs and other end-of-life expenses

With elderly insurance, it pays to shop around because rates can vary. Please call 1-888 203-5449 for a free quote. Our experienced advisors will give you the best rates and guide you on choosing a policy that is right for you.

 

 

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