How to Get Life Insurance on a Parent

Summary: You can get life insurance for a parent if they consent and you have insurable interest. Options may include term, whole or guaranteed issue coverage, depending on your parent's age, health and budget.

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It’s never easy to think about losing a parent, but planning may help ease the financial stress when the time comes. One way people may plan ahead is through life insurance policies. Even if your parents are elderly, you may be able to buy life insurance for them. A policy may be able to help cover final expenses and medical bills, so you’re not left navigating both grief and unexpected costs if your parent passes away.

In this article, we'll walk you through what you need to know when buying life insurance for elderly parents and how to choose the right policy for them.

Can you get life insurance on your parents?

Yes, you can get life insurance for your parents, but there are a few key requirements that must be met first.

Legal consent and eligibility requirements

Before you can get life insurance on your parents, you need to have your parents’ consent to open a policy for them. Their agreement is necessary because they’ll need to sign application forms and may have to complete a health exam or medical questionnaire.

The second key requirement is that your parent must be eligible for a policy. Traditional whole life and term policies may have age and health restrictions. Guaranteed issue whole life insurance typically only considers age as an approval factor.

Understanding insurable interest in parental policies

Some policies require proving insurable interest when taking out a policy on a parent. This means that insurers must confirm that you’d face financial, not just emotional, loss if a parent passed away. As their child or caregiver, you may be able to prove insurable interest if you:

How to apply for life insurance on a parent

If all three requirements are met, you can apply for life insurance for your parents. Here’s a step-by-step process on how to do this.

1Step 1. Confirm consent and insurable interest

Talk to your parents about taking out a policy for them and get verbal consent. Also, verify your financial ties to your parent to prove insurable interest.

2Step 2. Assess coverage needs

There are three aspects you'll want to consider when assessing the size and type of life insurance.

A. Funeral expenses and shared income. Estimate what their funeral expenses and the income they have that you may rely on.

B. Debts. Think about any debt they may leave behind that you could be responsible for, such as any debts you co-signed.

C. Age and health. Lastly, consider which type of life insurance best suits your parents' needs, taking into account their budget, age and health.

3Step 3. Get and compare quotes

Once you know the type of life insurance and death benefit amount needed, compare policies by getting quotes from various insurers either online or by phone.

You'll need to balance the cost of the policy with how much of the expected final expense you want it to cover.

4Step 4. Complete the life insurance application and medical exams (if applicable)

Fill out and submit the application with your parents, having them sign where necessary. Depending on the type of policy, you may need to answer questions about your parents':

• Family health history
• Medical history
• Current medications

In this part, you'll also need to decide who will own the policy. Typically, the person paying the premiums is also the owner of the policy.

Your insurer may also contact you to schedule a medical exam if it's part of the application process. They may also request additional documentation based on the answers in the application.

5Step 5. Wait for approval (if necessary)

Guaranteed issue policies are usually approved immediately and take effect the same day. Traditionally, underwritten policies may take weeks or a couple of months for approval.

Types of life insurance for parents

Term, whole life and guaranteed issue are the most common types of life insurance for parents. Here's how they differ.

Term life insurance for parents

Term life insurance for senior parents offers coverage for a set number of years, such as 10 or 20. It’s usually more affordable than permanent life insurance because coverage is for a limited time and doesn’t build cash value. It’s best suited for healthy seniors.

Whole life insurance for parents

Whole life insurance for senior parents offers lifelong coverage that doesn’t expire, as long as premiums are paid. There’s also a cash value component that grows over time and may be borrowed from. However, unpaid loans usually reduce the death benefit.

Whole life can be more expensive for older applicants, and may be a better option for seniors in good health.

Guaranteed whole life insurance

Guaranteed issue life insurance is a type of whole life insurance that requires no medical exam or health questions, making it a potentially appealing option for senior parents with pre-existing health conditions.

Approval is typically guaranteed for people meeting the policy age requirements. Minimum and maximum age requirements vary by insurer. Coverage amounts are usually lower and more affordable than other term or traditional whole life insurance.

Approval is typically guaranteed for people meeting the policy age requirements. Minimum and maximum age requirements vary by insurer. Coverage amounts are usually lower and more affordable than other term or traditional whole life insurance.

The best life insurance options for elderly parents

If you’re not sure which type of life insurance to get for your parents, here are some tips to help you decide.

Life insurance for parents over 60

There are options for life insurance policies for elderly parents. These questions may help clarify which life insurance policy for parents over 60 or 70 may be a good fit:

Coverage for parents with pre-existing conditions

Guaranteed issue life insurance coverage may be the better option if your parent has diabetes, heart disease, a cancer history or other pre-existing conditions. Guaranteed issue life insurance usually accepts nearly everyone meeting the insurer’s age requirements, commonly between 45 and 85 years old (50 to 75 in NY). Check with the insurer to confirm your parent is within the age limits.

How much life insurance should you get for a parent?

For a general estimate on how much life insurance for parents is needed, add up:

• Expected funeral costs
• Unpaid medical bills
• Remaining debts
• Shared resources you rely on

A typical policy for seniors can range from $10,000 to $50,000, which may be enough to help ease financial stress after their passing.

Frequently asked questions (FAQs)

Who should be the policy owner?

Either you or your parent can be the policy owner. Owning the policy makes it easier to manage premium payments and update beneficiaries.

Can I own the policy and be a beneficiary?

Yes, you can be both as long as you have proof of insurable interest. This allows you to manage the policy and receive the death benefit payout.

Is there an age limit on life insurance for my parents?

There’s no legal age limit, but it’s not uncommon for term policies to have an age limit of 70 or 80.¹ Whole life policies may have limits of 80 or 85 years of age at the time of issuance. Generally, options may become fewer and premiums more expensive with age.

Sources

1. Texas Department of Insurance, Life insurance guide, August 7, 2004.