Children can purchase life insurance for their parents. They can choose from the many types of insurance policies available today.
It is best that children request a number of life insurance quotes for parents to make sure that they get the most affordable coverage. However, there are many limitations that come with parent’s life insurance. Everyone should understand these policies so that they only get the coverage that their parents truly deserve. Read also: Why Life Insurance for Children is a Great Investment.
Requirements for Getting Life Insurance Policies for Parents
The most basic requirement needed in applying for an insurance policy for parents is a complete application form. This needs to be signed by the parent as the primary applicant or primary insured. Some insurance companies will also require a medical exam before they can be approved.
Life Insurance Options for Parents
Term Life Insurance
Term life insurance is common today as it has the lowest rates while the term is active. However, children should take their parents’ age into account. The insurance company will only pay the beneficiaries when the insured person dies within the term. Read also: Comparing Life Insurance While Getting Older.
Whole Term Life Insurance or Universal Life Insurance
Whole term and universal life are among the most common choices for parents life insurance policies. Generally, these policies offer lower rates for lifetime coverage. Everyone can obtain life insurance quotes for parents easily. The insurance company will pay benefits to the remaining beneficiaries when the insured parent dies at any time.
Second-to-Die Insurance
Second-to-die insurance is another popular choice for parents. The policy states that the insurer will only pay the family of the insured with the second parent dies. This policy is quite unique, as the living spouse will not receive any benefits when their other half dies first. These policies are often purchased in combination with estate planning. Read also: Is Life Insurance for Babies Really Necessary?
Insurance for Veteran Parents
Children of veteran parents who cannot afford to purchase life insurance plans from private companies may seek help from the Department of Veterans’ Affairs. The government helps them secure insurance benefits if they are not capable of getting a policy due to military service-related disabilities.
Estimated Cost of Life Insurance Policies for Parents
According to insurance industry expert, parents should get a life insurance policy at the age of 56. This is because they are near the age of retirement. A 20-year term life insurance policy for a 56-year old female parent will cost an average of $1,250 annually for $500,000 in death benefits and $2,215 for $1 million in coverage. On the other hand, males have to pay $1,655 and $3,135 on average per year for $500,000 and $1 million in death benefits respectively.
Meanwhile, whole life insurance policies require female parents to pay an average of $966 per year for $100,000 in coverage and $2,388 per year for $250,000 in death benefits. Males have to pay $1,169 and $2,383 respectively per year for the same amount of coverage on average. Rates may vary depending on many factors. Read also: How much is Your Life Worth? Life Insurance Protects Your Family.
Finding the Most Affordable Life Insurance Quotes for Parents
- Evaluate the Options
People should make sure that they understand all the insurance options they have. They should take the age and health of their parents into consideration. Age and health are major factors that affect insurance premiums.
- Shop Around
There are many price comparison and quotation sites that can help narrow down the choices. These services are free, and they can give valuable information about the current offerings from different insurance companies. Typically, older people get higher premiums. However, it is not impossible to find the most affordable options.
Comparison services allow everyone to learn about small insurance providers in the state. Smaller companies can offer more desirable life insurance rates for parents than other insurers.