Buying Life Insurance for Your Parents

by Jeff Rose on November 21, 2012

Buying Life Insurance for Your ParentsDuring life there comes a time when your parents will come to rely on you more than ever, I guess you could call it a reversal of the roles.

When this happens in some instances the child becomes the parent and the parent becomes the child, leaving the responsibility of important decisions on the shoulders of the children.

Early on, it’s important for you to start considering plans for the inevitable day when they are no longer with you.

One of the simplest ways to start this planning process is to ensure you have a life insurance policy for your parents in place.

Buying life insurance for your parents can be a difficult task because you have to come to terms with the thought of them passing away, but it is essential to ensuring you have the time to grieve, rather than stress about burial plans.

Make Sure You Do Your Research

Everyone will have a different motivation for buying life insurance for their parents. Some people see it as a way to ensure that there is enough money to provide their parents with a proper burial, to cover final expenses after the death of their parent and some people purchase policy’s to preserve the estate of their parents, so that it can be passed down through the generations.
Whatever your reason for buying life insurance for your parents is, it’s important to research different companies to find the policy that is best suited for your situation. Every policy and every company will have their own terms and standards.

Establishing A Need

Typically insurance companies will require a insurable interest before issuing you a policy. This serves as proof, that in the event of their death, you would somehow suffer financially as a result. This serves as a buffer for insurance companies so that they aren’t issuing policies to individuals who are just looking to profit off the death of a loved one.

What Type Of Policy Are You Looking For?

Once this financial need as been established, you have the option to choose both the type and amount of coverage you need for your policy. Most often people will purchase a guaranteed universal life policy instead of a whole life insurance or term life insurance policy.
This is because a universal life insurance policy will guarantee death benefits to guaranteed premium and whole life at a far cheaper premium cost.
On the other hand, it’s also important to mention that guaranteed universal like and term life insurance policies don’t build up a cash value over time in the same manner that a whole life insurance policy does.
Therefore, if your reason for buying life insurance for your parents is to create equity in the policy, a whole life insurance policy is more likely a better choice for your situation.

The First Step

Regardless of the type of policy you need, the most important thing to remember is that you need to get started right away. When dealing with such serious issues as providing your parents with the burial they deserve or protecting the estate they so tirelessly worked to build, it’s important that you react right away.
The first step to protecting your family is to call and get a quote. Once you receive a quote that fits both your personal needs and budget, you’ll be ready to purchase a policy and ensure the protection of your family.

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