Burial Insurance for Parents

Many people ask us, “Can I buy life insurance on my parents, or will they need to purchase the policy themselves?” The answer to both of these questions is either of you can buy burial insurance, depending on the company you go with and the state you live in.

With funeral costs rising yearly, the sooner you take the necessary action, the easier it will be to pay for these burial expenses when a death occurs.

Why Do I Need To Buy Life Insurance For My Parents?

Funerals are expensive, and finding a way to pay for the funeral while grieving is an additional emotional and financial burden.

Burial insurance for seniors or final expense insurance can pay for the funeral, burial, and final expenses. A funeral can cost over $10,000 today; this includes burial, memorial service costs, and plot. A burial life insurance plan for your parents can help ease this financial burden.

If you purchase burial insurance for your parents, you can also pay off any credit card bills or unpaid debts.

If your parents own real estate and still have a mortgage, you can purchase life insurance to pay off the mortgage in case of their passing. If your parents own real estate, you may have to pay taxes on your parent’s estate’s value, and if you buy a policy, this can help you pay real estate taxes.

Can You Buy Burial Insurance On Your Parents?

If you’ve decided it’s time to get burial insurance for your parents, as a child, you have an insurable interest. You must have your parent’s consent to do this. They must be aware of the life insurance policy since they must sign the application.

Can You Buy Burial Insurance For Parents Over 80?

Yes. Some burial insurance companies issue life insurance coverage to individuals 85 years old or younger, effective immediately. This insurance with no waiting period is best if they are medically qualified or your parents are still healthy.

Buying burial insurance for your parents is a great option if they do not have life insurance and do not have the finances to pay for their final expenses.

Which Type Of Life Insurance Is The Best Option For Parents?

Term Life Insurance

Depending on the applicant’s age and the insurance company, this is only available for a particular period, such as 10, 15, 20, 25, or 30 years. Term life is short for terminating or will expire when the term ends.

Term life insurance policy for parents only provides pure death benefit protection, often the most affordable type of policy. It is a good option if your parents are in decent health, but if they outlive the term, the goal of getting life insurance to cover final expenses is defeated.

Term insurance is not available to all ages. As a rule, you can only purchase term life insurance if your parent is younger than 70. If they are over 70, you may need to buy whole life insurance or a guaranteed issue policy.

Simplified Issue Whole Life Insurance

Whole life is the simplest type of permanent life insurance because it has a fixed death benefit amount, and the premium amount is locked in for the life of the policy. The premium will not increase despite your parent’s advancing age or worsening medical condition after purchasing insurance coverage. A simplified issue is that whole life is a life insurance policy that pays for the very first day. This life insurance policy pays from the moment your policy is approved.

The whole life insurance policy has a cash value component. This cash value accrues interest and grows on a tax-deferred basis; the interest is not subject to tax until you withdraw it. Some companies offer dividends on whole life policies, but this is not guaranteed.

Guaranteed Acceptance Whole Life

Guaranteed acceptance is a whole-life policy that never expires. Your parents can have coverage for their whole life.

A guaranteed issue policy does not require approval of a medical exam or health questions. This life insurance for a parent is only recommended for those who have significant health issues. Acceptance is guaranteed, and applicants will qualify regardless of their health.

Guaranteed acceptance policy that has a graded death benefit limitation (the policy has a two-year waiting period).

If the insured dies during the waiting period, their beneficiaries will not receive the full insurance proceeds. They will only get the return on premium plus 7% to 10% interest. The whole death benefit will only be given if they die after the waiting period.

Requirements When Buying Life Insurance Policy For Parents

1. Proof of Insurable interest means you would have a financial loss if your parent passes. Financial loss could include funeral, medical, or leftover credit card bills. 
2. Consent to review Medical History – The Health Insurance Portability and Accountability Act HIPPA indicates that your parents must give full consent for their medical history to be reviewed. Without this consent, your application cannot proceed. 

There’s no need to have an actual medical exam, but your parents will have to answer some health questions and allow the carrier to check your parent’s prescription history. This allows the insurance company to determine medically if they are eligible for coverage.

What If My Parent Is Not In Good Health?

Most applicants will qualify for first-day coverage insurance even with health issues. It’s always better if your parents are in good health…but it’s not a requirement to buy final expense funeral insurance.

The best time to get a life insurance policy is before your parent has any significant medical condition that puts them in the high-risk category; they may not qualify for a first-day coverage policy. In this situation, they can only qualify for a guaranteed issue policy.

Guaranteed acceptance final expense policies don’t require a medical exam. It does not have health questions on the application either. Your parents will qualify even if they have a major illness.

Guaranteed acceptance with no exam policy can be approved within a few minutes because there is no health underwriting. 

The huge drawback to the guaranteed acceptance policy is the two-year waiting period and the limited death benefit. Depending on the company you apply to, you can often get burial insurance policies for $2,000 to a maximum of $50,000.

How Much Burial Insurance Coverage Should You Buy?

The cost of a funeral and burial, on average, is $8,000-$12,000, depending on your location and the cost of goods and services chosen.

THE COST DIFFERENCE BETWEEN A BURIAL AND CREMATION

• The average burial service costs anywhere from $8,000-$12,000
• The average cremation service cost anywhere from $1,500-$5,000
• The cost difference between burial and cremation is big, but your parents’ final costs will be determined by the type of services you select for them.

Those average numbers above will help you determine how much life insurance coverage you need to buy. It’s wise to buy life insurance for parents enough to cover the funeral costs and the other bills left upon your parents’ death. 

Too little coverage won’t give you the financial protection you need.

• Important Things to Consider Before Buying Life Insurance For Your ParentsThere are four parties involved in the purchase of a life insurance policy:
  • Insured – The insured is the person covered by the life insurance; her death will result in a death benefit payout. In this instance, it will be your mother.
  • Owner – The policy owner holds the rights to the life insurance contract and has the right to change the policy, such as changing the beneficiary, transferring ownership, lowering death benefits, adding or deleting riders, and requesting a rating change for the insured.
  • Payor – is the person who will be paying the premium. The payor is also considered the owner of the policy.
  • Beneficiary – is the person designated to receive the death benefit payout. You can be the beneficiary of your mom’s policy.

How To Find The Best Burial Insurance For Parents

Begin your process by looking for a life insurance broker who can check out the different policies and life insurance rates. It helps to work with an agent who can shop around at different insurance companies to find the right benefits that fit your budget.

If you apply for a plan, you will be the owner of the policy as well as the beneficiary. Your parents must sign the plan electronically (or over the phone voice signature). Most insurance carriers will talk to your parents for a quick phone interview to ensure they know what they are applying for.

For most insurance companies, the issue starts at 50, but a few issues plan at a younger age. 85 is the maximum age of issue, but some carriers will go a few years older. 

Look for the following criteria when looking for burial insurance:

• Find a burial insurance company with financial stability and strength to pay out all claims.
• Find a policy that will get your parents covered as soon as possible
• Find the policy with the lowest monthly premium

Today is the best time to get life insurance for parents or final expense insurance for parents. Letting a day pass will often make the premium more expensive.

How Can Funeral Funds Help Me?

Our job at Funeral Funds is to be the most knowledgeable burial insurance experts available. We can get you the most accurate quote and affordable life insurance rates for parents.

Once we know more about your age and health history, we can accurately give you burial insurance quotes from the final expense companies that best fit you.

The reality is that most inexperienced and less knowledgeable insurance agents who offer life insurance will cost you loads of money by selling you more expensive policies.

Working with an independent brokerage like Funeral Funds is always in your best interest. With access to all the best final expense life insurance companies, we will help you understand your best life insurance option, given your current age, health, and financial situation.

Frequently Asked Questions

Can I buy insurance for my parents?

Yes, you can buy insurance for your parents. There are two requirements to fulfill before buying life insurance for your parents.

• First, you need to have their consent. They must be aware that you are buying a policy for them.
• Second, you must show insurable interest.

You have an insurable interest if you experience financial hardship upon your parent’s passing.

Can I buy life insurance for parents with health problems?

It is possible to buy life insurance if your parents have health problems. If you are considering this route, it’s best to speak with an agent or broker who understands your parents’ current health conditions and the company underwriting guidelines for the policy.

Can you take out burial insurance for my parents?

Yes, you can buy burial insurance for your parents. This is a life insurance policy with the sole objective of paying for a funeral service. Burial policies are usually fairly inexpensive, which makes them an attractive option when you’re looking to pay for a loved one’s final arrangements.

What happens to my parents’ life insurance if they move?

If your parents are already covered by a life insurance plan when they move, their coverage will automatically go with them. However, if they are not covered at the time of the move and it is more than three months from when you first applied for coverage, their lives will no longer be insurable.

Can I put final expense life insurance on my parents?

Yes, you can buy final expense life insurance for your parents. This policy is typically designed to provide money for funeral costs and any outstanding debts that remain once the person passes away.

Why should I get insurance for my parents?

There are several reasons why you should consider buying insurance for your parents. For example, if your mother or father passes away suddenly, their life insurance policy may help you pay off any outstanding financial obligations, such as a mortgage or credit card debt. You might also need extra money for medical bills and funeral costs.

Can I get life insurance on my mother without her knowing?

No, you can’t get life insurance on your mother without her knowing because consent is the first requirement for getting life insurance for somebody else. The insured must know the policy because they need to sign the application form before it can be processed.

Can I get funeral cover for my parents?

Yes, you can get funeral cover for your parents. This type of life insurance policy pays out in the event of death. The money can be used to pay for any final expenses. You only need to show insurable interest and consent to get a funeral cover for your parents.

Can you buy life insurance on a parent without their consent?

No, you can’t buy life insurance on your parent without their consent. To get a life insurance policy for somebody else, you need the person’s knowledge and consent. You can’t buy a policy for them if they refuse to sign an application.

Can I get a life cover for my parents?

Yes, you can get a life cover for your parents. A life cover is the most common type of life insurance policy. It pays out in the event of death, but some variations can also payout if the insured is diagnosed with a terminal illness or becomes permanently disabled due to an accident or illness.

How much does it cost to get life insurance on my parent?

The cost of getting life insurance on your parent will depend on several factors. For example, the younger they are when you apply for coverage, the less expensive it is likely to be.

Can I take out a funeral plan for my mother?

Yes, you can take out a funeral plan for your mother. This inexpensive life insurance policy pays out in the event of death. The money can be used to pay for any funeral expenses, including transportation costs and a headstone.

Can I get life insurance for my 80 year old mother?

Yes, you can get life insurance for your 80-year-old mother because many life insurance companies offer life insurance until age 85. The only requirements are insurable interest and consent.

Can I take a life cover for my mother?

Yes, you can take out a life cover for your mother. This is the most common type of life insurance policy that pays out in the event of death. The money can be used to pay for any final expenses and won’t affect your parents’ existing life insurance plan if they already have one.

Can you take life cover for someone else?

Yes, you can take life cover for somebody else if they permit it. You can show the life insurance company that you have an insurable interest, or you will be affected financially upon their passing.

Can I purchase cremation insurance for my parents?

Yes, you can purchase cremation insurance for your parents. This is a life insurance policy that pays out in the event of death, and it will cover the costs of transporting the deceased as well as paying for any medical or funeral expenses.

Can I get funeral insurance on my parent?

Yes, you can get funeral insurance on your parent because many life insurance companies will offer life assurance until age 85. This insurance product pays out in the event of death, and it does not affect your parent’s existing policy if they already have one in place.

What happens if a life insurance policy owner dies before the insured?

If the owner of a life insurance policy dies before the insured, it is important to inform the life company so that they can cancel the policy. If this is not done, they may continue to send invoices for payment, and there could be implications if they find out later on.

Can I get life insurance on my father without him knowing?

No, you can’t get life insurance on your father without him knowing. To get life insurance for somebody else, you need that person’s knowledge and consent; otherwise, it is an act of fraud.

Can I take out life insurance on my dad?

Yes, you can take out life insurance on your dad. A life insurance policy is the most common type of life assurance that will pay out in the event of death. You can use this to pay for any final expenses, and it won’t impact your father’s existing plans if he already has one in place.

Can I get burial insurance on my parents without them knowing?

No, you can’t get burial insurance on your parents without them knowing. To take out a life policy for somebody else, you need that person’s knowledge and consent; otherwise, it is known as an act of fraud.

How do I get burial insurance for my parents?

You can get burial insurance for your parents by taking out a life policy. This is the most common type of life assurance that pays out in the event of death and can be used to pay for final expenses. You only need to get their consent and show insurable interest to the insurance company.

Can I get life insurance for parents over 70?

Yes, you can get life insurance for your parents over 70 because many life companies offer life assurance until age 85. This is the most common type of policy that will pay out in the event of death and won’t impact your parent’s existing plans if they already have one in place.

Which insurance is best for parents?

The best life insurance for parents is a first-day coverage plan with no waiting period.

How do I get insurance for my mom?

The best way to get insurance for your mom is to call an independent life insurance agent and discuss your needs. They will be able to help you find the best plan for your mom.

What do you do if your parents don’t have life insurance?

You should consider buying a policy if your parents don’t have life insurance. You can usually get a policy for your parents for a relatively low cost, and it could provide peace of mind for you and your family.

Why parents should get life insurance?

Parents should get life insurance for a variety of reasons. Some of the most common reasons include providing financial security for their children in case something happens and helping pay for funeral expenses.

Why both parents should have life insurance?

It’s a good idea for both parents to have life insurance since it provides financial security for the family if something happens to one of them. The life insurance policy will pay a lump sum to the surviving spouse and children if one parent dies. This can help them cover funeral costs, household bills, and other important expenses.

Should all parents have life insurance?

No, not all parents need life insurance. However, it is a good idea for parents with young children or dependents to have a policy. This provides financial security for the family if something happens to the parent.

Can I get life insurance for parents with pre-existing conditions?

It is possible to get life insurance for parents with pre-existing conditions. You should talk to an independent life insurance agent to find out what options are available.