If you are lucky enough to have elderly parents or grandparents (or aunts or uncles) you may find you are needing to help them purchase some life insurance. Unfortunately, many of us wait until we are older to decide we need some coverage. Many elderly family members want some final expense insurance and we can help you make it easy for all involved.
Reasons for Coverage
Did you know that there are many reasons why life insurance for elderly parents is a good idea? You need to consider not only the reasons they may need life insurance, but what are the consequences if they don’t purchase coverage. Who will pay for their final expenses? Let’s figure out the best ways to approach getting your family insured.
Here are some of the more common reasons why life insurance for elderlyfamily members may be needed.
What Kind of Coverage is Available?
Senior citizens can purchase term life, whole life or universal life. There are different types of policies available based on your needs, finances and insurability.
However, when you are dealing with seniors and end of life reasons for life insurance, term policies don’t make a lot of sense. If your parent outlives the term period, the cost of that policy will skyrocket and likely make it not affordable, or they may be too old to purchase any coverage or it may be too costly. You only want to look at policies that last for their lifetime.
You can purchase coverage up to age 89. However, at that age, the premiums are very expensive! It makes sense to get insurance earlier, when the cost is more manageable. Universal life policies are available up to age 90. Final expense coverage can be purchased through age 89 for level benefits. For graded benefits, age 80 is usually the maximum. Guaranteed issue policies can be bought through age 85.
Buying Life Insurance for your Father or Grandfather
Men are more expensive to insure than women. This is because women live longer than men (as a rule). Most likely, your Mother or Grandmother will be alive when your Father or Grandfather passes. Life insurance makes a difficult time just a bit easier.
Buying Life Insurance for your Mother
As women usually live longer than men, your Mother may be the last of the pair to pass. The children will be responsible for making and paying for all of the final arrangements. Again, life insurance takes one burden away.
If you have insurance, when the insured passes, many funeral homes will provide services without the cash in hand. They will have the beneficiary sign an assignment form essentially making the funeral home payee for the amount of the services provided. The beneficiary will then get the balance of the life insurance policy.
The Bottom Line
Talking to your Mother and/or Father about purchasing life insurance may not be the easiest conversation to have. But you may find it to be a necessary one. Get all the facts before you start. A conversation with an independent life insurance agent will give you indispensable information to share with your parents, including pricing. Have that talk today because life insurance gets more expensive every year you wait.
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