Sometimes parents need financial help from their adult children because of their retirement and other factors. Did you know more than 18% of Americans with a household income of $75,000 and above know that their parents will need financial assistance from them?
That is why a policy can cover the final expenses they might leave behind and give you some peace of mind. Here is everything you need to know about purchasing life insurance for elderly parents to avoid a denied life insurance claim.
1. Coverage
You need to know the amount of coverage they will need. For example, the average cost of a funeral can be $6,000 and above, depending on your service. That is why you should get quotes from funeral homes to understand your expense.
Besides that, if they have any debts or other dues, you need to consider it. Knowing these financial realities will help you in understanding the estimate of coverage you will need.
2. Policy
After coverage, the most important thing is finding the right policy that will suit their and your needs. There are multiple life insurance policies available in the market. However, you should take a close look and understand what it offers and if it covers everything you need.
Never go for a cheap monthly plan. Just because it is affordable does not mean it is the best policy for your situation. Instead, you should thoroughly go through each point and then decide if it is suitable for you.
You should research and compare different life insurance policies from various insurance companies in your area. It will give you a better idea of what you can expect. Thorough research is essential for choosing the right policy.
3. Owner And Payer Of The Policy
Once you decide which policy to go for, you will need to determine who will own and pay for the policy. In many cases, you will need the consent of your parents to buy a policy for them. The consent can be easily obtained by having them sign on the life insurance application.
Many policies also require a life insurance exam to be performed. It is a medical exam that will assess the health of your parents. Keep in mind that this is a routine procedure and is only done to make sure everything is correct.
Your circumstances will determine who is the best person to own and pay for the policy. That is because the person who pays the premiums owns the policy. You can also take the help of your insurance lawyer or agent to choose the best person for the policy.
4. Work With An Insurance Agent
If you know nothing about life insurance policies or don’t understand them, you should work with an insurance agent. They will help you compare various offers from multiple insurance companies that will aid you in the decision. After that, they will help you match with the company they think suits you best.
They know the insurance landscape better than you, and they can help you choose the best life insurance policy for your situation. That is why you can always seek their help if you can’t seem to decide which policy is right for you.
5. Gather All Information Of Your Parents Health
The most important factor for any company deciding to accept your policy is the state of your parent’s health. That is why you should gather all the information you can related to your parent’s health. These include:
- Past and present diagnosed conditions
- Past and present medications
- Major health events such as stroke, heart attack, cancer, etc.
- Weight and height of your parents
- Alcohol and tobacco use
- And much more
Some insurers may ask for all this information, and some may need some information from this. To be fully prepared, you should gather all this information so they can paint a better picture of your parent’s health. Knowing their medications, diagnosed conditions, and health events are the most important thing.
Such information can make or break their decision, which is why you need to be truthful when it comes to this. The information will help them determine premiums, length of policy, and much more.
Final Words
That was your complete guide to purchasing a life insurance policy for your parents. Make sure to follow these guidelines to have a hassle-free experience. Once you do, it will be easier for you to find the right policy for your elder parents. Keep in mind that you should always take advice from an insurance lawyer or agent. They know the landscape better and will give you professional advice in these matters. As a result, the entire process will become easier, and you will have the best policy for your parents in your hands.
