Can I get Life Insurance for my Parents

Written by Willie
Ware

12/7/2021

 

 

If you’re
looking for Life Insurance for your parents, you’ve come to a place where we can
help you to get them insured. I relate to the way that you feel because one of
my parents died without having sufficient insurance and I had to pay for a
portion of his final expenses, out of pocket. I had to go into debt to cover
this, so it was a lesson that I’ve experienced firsthand. As a result, I make
sure that I have adequate insurance so that my daughter doesn’t have to go
through that and I’m happy to help you to understand what it is that you’re
facing.

 To be able to take out a Life Insurance Policy
on another person, you must have what’s called an “Insurable Interest” in that person’s well-being. So, you
can’t take out a policy on your neighbor because he doesn’t have the money to
do that. You will have to have an interest in the person that you if something
happens to them, then it would or could cause you to suffer sort of financial
loss. For example, if one of your parents or both parents don’t have life
insurance and they suddenly pass away, there are a few ways that you could
suffer that financial loss. Such as, having to pay for their funeral expenses,
having a loss of their income, if they live with you and they are helping you
to cover expenses or if they are supporting you financially and something
happens to them. If they help you with the kids, while you’re at work, if you
have shared expenses like credit cards, auto loans, personal loans. If you
should be a part of a business that they own, or you own together. There are
any number of ways that you could be financially connected to them and thus
suffer a loss.

Another
example not related to Life Insurance for Parents would be a husband or wife.
If they were to suddenly pass, you could certainly have a financial disruption,
loss of income, loss of a partner to help with things that might be needed, again
like taking care of children, being a housewife, being the bread winner, having
shared debts, financial responsibilities, retirement or Social Security income.
Having the loss of a second income and their final expense arrangements. The
loss of their business income with no one to continue in their place if
arrangements haven’t already been made. All of this while having to deal with
the grief and mourning of the loss of this person. As most of us know, it’s
something that is difficult to deal with for someone else and having to go
through it ourselves can be devastating. I hope that explains the concept of”
Insurable interest”.

As you can
see there can be many ways that you might have a financial interest if God
forbid, something was to happen to a loved one. Now I know that this article is
about getting Life Insurance for Your Parents, but the other examples help to
illustrate the point of insurable interest. I’m not saying these things to try
and scare you; this article is to provide you the information that you might need
to be able to handle the situation in what is more than likely going to be a
stressful time.

So now that
you understand a little about Insurable interest, let’s move onto getting this
coverage for your parents.

Life Insurance Rates:

 

So, Life
Insurance rates are mostly determined by three factors, the insured’s age,
their health condition and the amount and the type of coverage that is being
applied for. Let’s go over each one of these scenario’s, to get a bit of an
understanding of what it’s going to take to get your parents covered.

Click Here to Compare
rates without an agent.

 

 

Age:

 

The age of
the person insured is extremely important in determining the cost of the
insurance. The older the individual is, the more expensive the insurance is
going to be. This, of course, is because the older a person is the more likely
that he or she is going to die. This is something that happens to everyone, no
one escapes this, but it is more likely that an elderly person is going to pass
away as opposed to a young, healthy individual. Life Insurance spreads the risk
out over a large group of people, so everyone is charged according to the
figures that the insurance company’s Actuaries come up with. So that the
insurance company has enough assets to make a profit and to cover all its
outstanding liabilities. These Actuaries, determine the risk involved and set
the price accordingly.

Health Condition:

 

Health is another
important factor that will play into how much the cost of Life Insurance will
be. The health of the applicant is taken under consideration because people who
become ill, especially to disease that can cause death are a much bigger
concern for the insurance companies because of course they could insure them
and be responsible for paying out a large claim with very little premium payments
from the client. The insurance company will typically check with the physician
of the proposed insured to find out the condition of the client. They will also
ask medical questions on the applications. If these questions are answered
falsely, this can be considered fraud and the insurance company would no longer
be liable for anything other than the premiums that were paid by the client and
the claim would not be paid. So, it is very important that you be as honest
with the insurance company about health information as you can be because you
could wind up with a voided claim if something is omitted.

The amount and type of Life Insurance
Coverage:

 

This, of
course will directly affect the cost the insurance. The bigger the Face Value,
or the amount of insurance applied for the larger the amount of premium. To
give you an example, Life Insurance for a 20-year-old female, a Universal Life Policy for half a
million dollars ($500,000), which will last to age 90 would cost around $141.00
per month. This policy will last for 70 years, build tax free cash value and
provide Life Insurance coverage for her family, should she decide to have one
well into the lives of her children. This will also provide a nest egg for her
when she gets older. The amount of the return will vary depending on the type
of policy.

The same
policy for the same person for $100,000 at age 60 would cost around $132.00 per
month. You can see the stark difference in premium. It is based on the
likelihood of the policy paying out and the possibility of the insurance
carrier getting to invest the premiums and get a return on that investment.

Types of Insurance:

 

There are three types of Insurance, Whole Life, Term and Final Expense.

 

Whole Life insurance: is insurance that will cover you
throughout the life of the insured, often until age 121. It has certain
characteristics, things like premiums that remain level or that can change over
time, depending on the type of policy. It can have a cash value portion of the
policy, where the amount of cash value in the policy is available to be
borrowed. Any loan that is taken out has to be paid back, with interest, or
that amount will be taken out of the face value of the policy at the time a
claim is made against the policy.

Term Life Insurance: is a life insurance policy that
last you for a certain time, such as 10 years, 20 years or 30 years. This coverage
is less expensive than Whole Life, but it will only last for the length of the
policy. After the term, you can still have coverage, but it will become overly
expensive. It would be better for you to cancel the policy and get additional
coverage if you wanted to continue to have insurance to cover your final
expenses. This is good coverage if finances don’t permit you to get Whole Life
Insurance.

 

Final Expense Insurance: is considered a type of Whole Life
Insurance, but it is usually for people who can’t get coverage because of
issues, like Age or Medical Condition. If you have been denied coverage, then
this is good option. You can’t be denied if you meet the age requirement,
somewhere in the age range of 50-85. This pool of insurance is often used
because this is the only type of insurance that a person can get. It is also
the most expensive. This is often a last resort for people to get covered.

 

Conclusion:

 

If you are
looking for Life Insurance for you parents, Aware Insurance Services has you
covered. You can contact us directly or you can sign up on one of the links
provided in the article, all are good options. We want to be here for you when
you’re ready to get insurance coverage. No high-pressure sales so that you might
regret the decision after you made it, again we are here to serve your needs. So,
if you want to speak with someone, if you have any questions, please feel free
to reach out.

 

My email is bill@awareinsurance.com

www.awareinsurance.com

My phone
number is 818-915-0534

I’m Willie
Ware, but you can call me Bill.

I hope that
this helped.

Thank you
for listening.