How Much is Life Insurance For My Elderly Parents
Stop wondering if you can take out life insurance on your senior parents and how much it will cost. The good news is, yes, you can take out a policy on your parents and the costs can still be affordable, depending on their age and health.
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To get a policy on your mother and/or father you simply have to demonstrate that you'll suffer some kind of financial loss in the event of your aging parents' passing.
This is called "insurable interest", and it's pretty much a given in the case of your mom or dad, or both.
Get a Quote On Common Coverage Amounts For Parents:
Because your parents are most likely elderly, the insurance premiums will be higher, but if you compare prices from different companies, you can still find some affordable rates.
If your mother and father are in good health, with no major health issues, it should not be too difficult to obtain coverage for them, and the premiums will be lower.
Keep in mind that in order to get a life insurance policy on a senior parent, you'll need their consent. So, if an aging parent is showing signs of dementia, make sure to get it before it gets too advanced, so they still can give the consent.
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What Types Of Life Insurance Policies Are Available For Parents
Parents have a few choices for life insurance coverage. Here are the most common types:
Guaranteed Issue Life Insurance
Unlike other types of life insurance policies, guaranteed issue life insurance does not require applicants to undergo medical exams or answer questions about their health. This is great for parents that may not qualify for a term or whole policy due to health issues or age.
These guaranteed life insurance policies are often used as final expense or burial policies. Like the name implies, they are used to simply pay for the insured's final and funeral expenses. They often have low death benefits - under $25,000.
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No Medical Exam Life Insurance
Like mentioned above, this is a guaranteed issue policy that does not have a medical exam requirement. Also, no blood tests, no nurse visit, and no health questions.
As you can understand, these policies are higher risk for the insurance companies, so the death benefit is very low.
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Simplified Issue Life Insurance
Simplified issue life insurance costs less than guaranteed, and has higher death benefits.
The drawback is, that it requires your parents to answer a few health questions and some basic demographic information, but the good news is, it does not need a medical exam either.
Coverage starts fairly quickly after the application is accepted.
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Term Life Insurance
Term life insurance provides coverage for a specified period (term), typically from ten to thirty years. This type of insurance pays out a death benefit if the insured individual dies during the policy term.
It is typically the least expensive type of life insurance. The premiums for term life insurance are based on the insured's age, health status, and lifestyle.
Depending on a parent's age, it may no longer be available. As you can understand, an insurance company will be reluctant to approve a 20-year term life policy for a 70 year old.
Can You Get Life Insurance for Your Elderly Parents?
Yes, you can purchase life insurance for your elderly parents. Being it to help cover their final expenses, debts, funeral, burial, etc. To buy a policy on your parent(s), you'll need their consent and proof of insurable interest.
The type of plan you should buy will depend on their age, financial standing, and overall health.
Don't wait another day, get your father and/or mother some life insurance coverage!
How To Get The Best Life Insurance Rates
Comparing rates from many different companies is the only way to make sure you are getting the most affordable and best life insurance rates.
Sometimes quotes will vary by hundreds of dollars per year from company to company, so by comparing many quotes, you'll find the cheapest rates possible for your mom and/or dad.
These policies are usually of higher amounts like $200,000; $300,000; $500,000; 1 million, etc.
Why Do Children May Need To Take Out a Life Insurance Policy On Their Parents
There are many reasons a child may want to insure mom and dad. But, the most common reason is to cover final expenses (burial expenses, cremation, and funeral services). This is usually a low amount policy - $10,000 to $20,000. Final expenses insurance policies are typically capped at $50,000 and don't require a medical exam and doctor's visit.
If the senior parents own real estate and still have a mortgage, the adult children or immediate family members may want to take out a policy to pay off the mortgage in case of their passing. They do not want to be stuck paying another mortgage.
Another reason, is to pay for estate taxes. If the parents are wealthy and own expensive real estate, they'll have to pay taxes on part of a parents estate's value, so a life insurance policy can help pay for them. Life insurance payouts are not taxable, so they are the perfect instrument to pay for estate taxes. A consultation with a financial advisor is always advisable with estate planning matters.
Average costs per month for a 10-year life insurance term policy for a man, non-smoker in fair health:
| AGE | $100,000 | $200,000 | $300,000 | $500,000 |
|---|---|---|---|---|
| 65 year old father | $63.60 | $121.32 per month | $142.44 | $234.75 |
| 66 year old male | $71.33 | $138.14 monthly | $154.82 | $256.15 |
| 67 year old man | $81.48 | $156.15 per month | $172.78 | $283.40 |
| 68 year old father | $91.85 | $177.41 monthly | $191.50 | $315.77 |
| 69 year old male | $104.78 | $202.66 per month | $216.33 | $354.67 |
| 70 year old man | $117.69 | $229.52 monthly | $245.33 | $405.23 |
| 71 year old male | $135.25 | $261.65 per month | $277.23 | $462.20 |
| 72 year old father | $151.85 | $295.15 monthly | $317.20 | $524.58 |
| 73 year old man | $171.18 | $337.20 per month | $365.26 | $601.35 |
| 74 year old male | $194.28 | $382.30 monthly | $422.52 | $700.58 |
| 75 year old father | $220.45 | $435.12 per month | $493.94 | $818.42 |
Average monthly policy costs for a 10 year life insurance term policy for a woman, non-smoker in good health:
| AGE | $50,000 | $100,000 | $200,000 | $300,000 | $500,000 |
|---|---|---|---|---|---|
| 65 year old mother | $40.25 | $53.23 | $101.09 | $120.75 | $197.70 |
| 66 year old female | $43.80 | $57.74 | $110.15 | $131.26 | $215.25 |
| 67 year old woman | $45.85 | $62.37 | $118.59 | $141.32 | $232.25 |
| 68 year old mother | $50.15 | $67.00 | $128.80 | $153.23 | $252.45 |
| 69 year old woman | $53.84 | $73.76 | $142.19 | $170.63 | $280.98 |
| 70 year old female | $58.72 | $83.01 | $160.50 | $194.25 | $320.23 |
| 71 year old mother | $64.90 | $99.62 | $194.18 | $224.70 | $371.25 |
| 72 year old female | $68.25 | $114.48 | $224.45 | $261.54 | $432.87 |
| 73 year old female | $75.83 | $131.72 | $260.40 | $305.43 | $505.53 |
| 74 year old woman | $84.25 | $150.59 | $298.50 | $356.74 | $591.07 |
| 75 year old mother | $94.18 | $172.42 | $342.25 | $417.58 | $692.19 |
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Although we only show rates up to age 75 in the tables above, in certain cases, your parents may still get coverage at age 76, 77, 78, 79. Sometimes, even in their eighties: 80, 81, 82, 83, 84, 84, 85.
Can You Get a Policy for Parents Without Their Consent?
The short answer is, no, you can't.
Your mother and/or father will have to give their consent for you to get a life insurance policy on them. The insurance company will also request proof of insurable interest - which basically means you will be financially affected by either of your parents' passing.
In Summary
No matter your parents age - over 60, over 65, over 70, over 75, over 80 - it is still possible to get life insurance on them. Insurance companies will look mostly at their present health status and at any past health issues they may have had. Of course, the older they are, the more money it will cost.
Any serious health issues like cancer, heart problems, diabetes, alcoholism, will make it difficult to get a policy on your parents.
Common Coverage Amounts For Elderly Parents:
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Typical Questions We Get Asked:
My parents are over 70 and have diabetes, can they get life insurance coverage?
A 70 year old diabetic can still be eligible for life insurance, although it's typically easier to get approved with type 2 diabetes versus type 1.
This is because type 2 is often diagnosed later in life and can be managed, while type 1 is more difficult to treat.
Before applying for coverage, make sure that your diabetes is regularly monitored and managed.
My mom is 75 years old, can she still get a life insurance policy?
Yes, it is still is possible for your mother to get coverage, but you may not be able to get a term life insurance policy with a high benefit amount, or it may be cost-prohibitive.
A very good option for the elderly, is to go with a simplified issue life insurance policy. This policy will cover most final expenses like burial, cremation, etcetera.
If a parent is 80 or over, is it possible to get any life insurance coverage?
The answer is very similar to the one above, but it starts to get more expensive and more difficult to insure people in their 80's. A guaranteed final expense policy may be a good option.