When purchasing life insurance, many people will typically only obtain policies on those with whom a loss would cause some type of financial hardship. This does not only pertain to life insurance on your spouse but also, life insurance for parents. Certainly, this is true for many families..
There are two ways to buy life insurance for your parents. If your parents purchase the policy, they do not need to prove insurable interest because they will be the owners of the policy and the insured. If you purchase the life insurance policy for your parents, you will be the owner of the policy and responsible for payments.. Go over your finances and your parent's finances to determine how much you need to take out. If your parents have a lot of debt, you should get a policy that covers the debt. If not, insurance executive Courtney Rogers recommends a policy at around twice what you expect to spend on a funeral..
Buying a life insurance policy for your parents is just like shopping for coverage for yourself. However, to determine the right provider and policy for your situation, there are a few steps to consider: Consent. Before looking into life insurance policies for your parents, you should first make sure they agree.. Buying Life Insurance for Your Parents. Although buying life insurance (term or permanent) for your parents is not something you look forward to, it may be necessary. If for no other reason, making sure your parents have a life insurance policy in place, will help alleviate your worries about taking care of their burial and final expenses..
Life Insurance for Parents. Why you may want to consider taking out a Life Insurance policy for your parents. Taking out a Life Insurance policy for your parents allows you to take care of your family’s financial needs after their passing.. Buying final expense insurance for your parents. There is one type of life insurance policy that is easier to purchase on behalf of your parents: Final expense insurance. Also called burial insurance, final expense insurance is a type of permanent life insurance that will last until your parent dies, provided you keep paying the premiums..