Life Insurance for Elderly Parents

Written by Strahan Financial Services

Life Insurance for Elderly Parents

Buying life insurance for elderly parents can relieve the anxiety of leaving a family with debt upon their absence. Although it may not be an unpleasant experience and a hard conversation to have, it may be a necessary one when considering your parents passing. Final expense insurance can be a sound financial decision and eliminate the emotional anxiety for both parents and children. Having adequate protection and is a wise decision to make.

After all, how many jars have we seen in grocery stores wanting and needing donations or websites requesting donations or fundraisers in bars or motorcycle rides to cover funeral costs? Bills arrive that were not anticipated or expected. It is hard to lose someone you love. If you add the pressure of figuring out how to pay out thousands of dollars out of pocket for a funeral and other final expenses at such an emotional time<, it is more complicated.

Many older people want to plan for the expense of their funerals and will be relieved to have help in coming up with a plan. Your parents may be able to pay the premiums themselves or not have any extra money to afford a life insurance policy. If you can step in and help with part of the final expense cost or cover all of the cost. You will find your help would be much appreciated. Today an average funeral cost between $10,000 and $15,000. Burial policies usually have a death benefit from $5,000 to $25.000. And, just getting a policy to cover funeral expenses usually will not be enough coverage.

Something else to consider would be the costs associated with hospice and other medical bills. Some parents may also have mortgage balances on their home, auto loans, and other personal outstanding debt. Purchasing life insurance for your parents will help guarantee the estate can pay the debts upon their passing, especially if they have financial obligations. With no life insurance, that obligation would be the responsibility of the next generation. Having these paid off by a life insurance policy can be a significant relief for surviving family members.

Can you purchase life insurance for elderly parents

Many people have asked this question, and it is 100% legal and happens daily. However, you must show that you will suffer financial loss in the event of your parent’s passing.  Elderly parents need to be notified that a life insurance policy is being purchased to insure them. They will also need to sign the application. You can successfully purchase life insurance on them with their knowledge and approval.  It is also essential to set up the owner and beneficiary correctly to avoid future tax problems.

How much life insurance should I purchase?

The amount of insurance needed is the estimated amount for final expenses, along with outstanding debts.  Your parents would probably be happy to know you have some excess cash to help with the grand children’s education fund or buy yourself something your family needs.

What type of life insurance for elderly parents to choose?

You have two choices, whole life or term insurance.  Term insurance will cover your parents, for a set time, usually 10 to 20 years. The length of coverage the insurance company will consider will depend on their age.  The older they are, the less time the company will offer. Typically a burial policy, or whole life, will have a minimum death benefit offered of $25,000. This is a good choice for life insurance for seniors.

However, you can use two companies to move that amount up to $50,000. Whole life is often referred to as burial insurance or final expense insurance and will last throughout the remainder of your parent’s life and is usually best for death benefits of $25,000 and below.  Many insurance companies offer life insurance for elderly parents over 80 years of age, and most stop at age 85. The older parents are, the higher the life insurance premiums will be.

What if my parents are not in good health?

If your parents are in good health, they will qualify for immediate approval with a permanent no medical exam whole life insurance policy. They may also be eligible for a term policy with a higher death benefit.

However, if they are in poor health, they may qualify for a graded policy or guaranteed issue policy. With a graded or guaranteed issue policy, the death benefit payable during the first two years is the premium paid into the policy refunded plus interest on that amount paid. Get a quote

The company wants the insured to live the first two years before a full death benefit is payable.  Some companies will pay 30% the first year, and 60% of the death benefit the second year. The total death benefit would be available at the beginning of the third year, and it varies by the company depending on the health issues involved.

For more significant amounts of coverage, choosing a term policy might be a better choice. Term coverage is available up the age of 75. However, poor health could raise the price considerably. See the chart below for sample rates if your parent is in good health.

Give us a call at 888-495-4068 or send us a quote request. We are here to help you find the best policy from a highly rated, well-known insurance company.  We are here to earn your business.

No Need for Face-To-Face Meetings

Changes in technology have brought about many changes in the life insurance industry. One difference is the elimination of face-to-face meetings with an insurance agent.  This meeting is no longer necessary. Although some companies still require that the agent and client meet face-to-face. However, many insurance companies have eliminated the requirement. Today you can fill out an application over the phone and have it emailed to for information accuracy and signatures.

Avoid Using Call Centers 

Do not use a call center. Many websites offering life insurance are call centers with cubicles of agents using a script to pressure you to buy life insurance. Some of the websites sell your information to 10 or more agents, which results in you receiving a large number of telephone calls. We are not a call center.

Avoid Using “Captive” Agents

Also, avoid using a captive agent. A captive agent must sell you products from the company that has “captured” and contracted them to solicit only their insurance company. Using a captive agent limits your choices of finding the best company at the best price, with the quickest turn around time. Also, be aware of many of the larger agencies that continuously advertise on the radio, which in reality only represent a handful of companies.

The key to finding the best life insurance quotes is to use a brokerage that represents multiple carriers. Strahan Financial Services works with the top best life insurance companies. Many of these companies have been around for a very long time are very well known and highly rated. We only use the top 1% of the 852 life insurance companies in the U.S.  Many of these companies can get a policy issued quickly and are well known. Finding the company that is the right fit for your situation, at the lowest possible price is our goal.

Why Use Strahan Financial Services

We work with a team of highly talented individuals committed to providing you with unmatched professional service with over 250 years of combined experience.

  • We area professional
  • We are knowledgeable
  • We use the latest advanced technology
  • We are customer-service driven
  • We will earn your business
  • We work to deliver beyond your expectations
  • We want a genuine “Thank you!” at the end of the process

About Strahan Financial Services

About Strahan Financial Services
About Strahan Financial Services

We work with individuals across the nation to secure the best life insurance rates.

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