Conversations that most people do not look forward to having are the ones surrounding making preparations for death. That’s why there are so many people who don’t have a living will and haven’t purchased life insurance. It’s simply a topic that they would prefer to completely avoid. If you can relate, while we certainly understand where you are coming from, the reality is that all of us will pass on one day and so it’s actually a sign of great care for the ones we leave behind to take out a life insurance policy beforehand.
So, what if you’re not getting one for yourself, but for your parents? Well, being that they are older than you and there’s a greater chance that they will die within your lifetime, that can make it all the more uncomfortable, but also all the more necessary. If you would like some tips on purchasing life insurance for your aging parents, we have enclosed five that should make the entire process much easier for you:
Know that it’s needed. Sometimes people are tempted to procrastinate with getting a policy. Then, when a loved one passes, they are stressed out with trying to figure out how to pay for funeral costs. So that you won’t have the added financial strain of paying to bury your parent(s) and so there can be an estate left for you and your siblings, it’s best to get a policy as soon as possible.
Do your research. As with any type of insurance, different companies come with different kinds of premiums; therefore, you definitely want to shop around until you find the best deal. One thing that you should keep in mind is that when it comes to getting a policy for your parents, many insurance companies will require what is known as an “insurable interest” which is basically proof that if your parents die, it will cause a financial burden on you. This is basically a “safety net” to prevent people who may know that they have a parent passing soon from taking out a policy and making money from it within a few weeks or months.
Inquire about the kind of policy that is best. Once you have some insurable interest, it is then time to do some inquiring about the kind of policy that is most suitable. Customarily, many individuals prefer to get guaranteed universal life insurance rather than term life insurance because it assures them that they will have access to death benefits, plus the premiums tend to come at a lower cost.
Consider your parent’s health. No matter what the age, if someone has a preexisting health condition, it can make getting life insurance that much more challenging. If you have a parent who is ill, you may want to do one of two things. One option is to look for policies that are created for certain health conditions. For instance, if your parent has diabetes, there are such policies known as life insurance for diabetics. Or you can request what is known as a “guaranteed issue policy”. It’s a policy that you can get regardless of a person’s health condition. They do cost more money but it’s worth it to have the peace of mind that your loved one is covered.
Be open to other options. Although it is an insurance agent’s job to sell policies, they are also professionally trained to know what’s available to you. So, be willing to share your situation and to ask them about any other options that you may not know about. The more knowledge you have, the better you will feel about taking out a policy that is best for your parents; one that will provide you with plenty of peace of mind.