As we see our parents and grandparents and even aunts and uncles getting older, we know it's time to think about their final years. It's not pleasant and there isn't much anyone can do to make it less uncomfortable, but there is something to do to make it a little better. The more prepared you are the better you will feel. That's where we can help. We make finding the most affordable life insurance for parents and other family members easy for you. We'll do the heavy lifting. Here's what we do:
You Have Some Things to Think About
For the purpose of this blog we will say parents, but it applies the same to grandparents, aunts, uncles, and anyone in their senior years. Here are the main things to consider:
- First and foremost are your parents willing to be insured. They will have to agree to get insurance and at the very least sign the application forms. If they are, great we go to the next step. If not, you must have a conversation with them to explain why it makes sense to have final expense insurance, how it protects the family.
- Do you have an idea how much insurance you are considering purchasing? It can be as low as $2,000 and it can go up to almost any amount depending on your needs.
- How old are your parents? Life insurance for seniors over 80 is different than for those over 70 or over 60.
- How healthy are your parents? This is where working with an independent life insurance agent can be extremely helpful. A number of factors will help decide which type of policy is best for your parents. Your agent will help you determine which company will work well since the underwriting criteria is not exactly the same and each company asks slightly different questions. Believe it or not you can be approved by one carrier and declined by another!
- Who will pay for the insurance? Will it be your parents? Or you and your siblings? How much can you afford to pay for coverage?
Why Does It Make Sense to Have Final Expense Insurance?
There are many reasons why you might want to have coverage on your parents. Here are some of the more common ones:
- To pay for their final expenses. Did you know that the average funeral cost in this country is over $7,000? Depending on your wishes you can spend much more than that! If you parents can't afford it, who will pay?
- Will your parents leave any debts? Again, who will be responsible for these?
- Is there a mortgage on property that you would like to pay off?
- Are you fortunate enough to have to be concerned with estate taxes when your parents pass away?
- Do your parents have a special need adult child who will require care once they are gone?
As you can imagine, the list goes on and on. Whatever your reasons are for needing coverage you and your parents will sleep better once you are protected.
Can I Get Insurance on the Internet?
The simple answer to this is not really. Yes, you can find websites that will give you a quote. But how will you know what is the right type of policy, or which company will actually approve your parents' applications?
An independent life insurance agent with experience in the senior market is going to be your best resource. They know about the different types of policies and all of the ins and outs needed to get you the best value. Here are the three types of policies available for permanent (lifetime) coverage.
- Final expense coverage- These policies are relatively easy to get. There is no exam required. If you qualify you can usually have a policy in hand in about 1-2 weeks. You can purchase $2,000 up to $40,000 of insurance. (More if you go to more than one company!)
- Universal life insurance- These policies require an exam with blood and urine samples for evaluation. Your parents' doctor records will be ordered as well. This is a less expensive option than final expense coverage, but qualifying is more difficult. It will take 6weeks to 2 months or more. The minimum amount of coverage is $25,000.
- Guaranteed Issue policies- Everyone qualifies as there are no health questions. You are covered only for accidental death for the first 2 years. After that you are covered for any reason. This is the more costly of the choices and is only used if you cannot obtain any other insurance.
The Bottom Line
Life insurance for elderly family members is available and makes good sense. Your best choice would be to talk to an independent life insurance agent with experience working with seniors. With many different companies to choose from, we can help you find the right policy to protect your family.