July 19th, 2006 | 
Author: 
Joe asked:
I am just curious, My parents are getting to the age where I have to start thinking about life insurance. They currently have none, and I was thinking of purchasing a Term life insurance plan for them, and paying it myself. Is that…possible to do? Like wouldnt I just make like say my and or my siblings for benificiaries on the plan and pay the premiums..and if (god forbid) the unthinkable were to happen..would it be a legit policy?? Confused!
Minta Gendusa
I am just curious, My parents are getting to the age where I have to start thinking about life insurance. They currently have none, and I was thinking of purchasing a Term life insurance plan for them, and paying it myself. Is that…possible to do? Like wouldnt I just make like say my and or my siblings for benificiaries on the plan and pay the premiums..and if (god forbid) the unthinkable were to happen..would it be a legit policy?? Confused!
Minta Gendusa
Posted in Insurance | 
Tags: God, Insurance, Life Insurance Plan, Parents, Premiums, Purchasing, Siblings, Term Insurance, Term Life Insurance, Unthinkable
Yes, but assuming you’re not twelve…in other words that they’re up there in age it’s not going to be cheap. Unless you’re just talking about a burial policy. Nonetheless “yes” is your answer.
Jeff
Sure you can, if you can afford it! The older you get, and the less healthy they get, the drastically more expensive it gets. At some point in time, it just gets cheaper to save your money.
You do have to have their consent and cooperation, though. You can’t buy it on them without their knowledge.
Yes. You can purchase life insurance for your parents.
However, most insurance companies will require you to demonstrate “insurable interest”. In other words, you will have to show that you stand to lose financially from their deaths.
This is to prevent people from taking out insurance policies on all of their old relatives so that they can profit from their deaths, or taking out policies on people and arranging an “accidental” death.
For example, you can claim that as their child, you will be responsible for burial expenses which will set you back $20,000 or so. So you can insure for that amount.
Or if they have a large amount of debt that you will be forced to settle on their deaths, you may need a much larger one.
If they are living with you and providing daily care for your children, then you may want to insure for the cost of alternative day care, and so on.
And yes, these policies as just as legitimate as policies for your spouse or children.
You can purchase life insurance for your aged parents, usually if they are under the age of 85 in some states, and 80 in others. You have to have their permission, and signatures on the applications.
The only insurance company that I have heard of that would write a term policy above age 65 would be United American Insurance Co. They have a 10-year renewable term to age 100, and the premiums only increase 10% at each renewal.
You can call UA and ask the location of an agent in your area, if they do business in your state. They do not write in NY. The company’s service # is 1-800-331-2512.
If your parents would not qualify due to health reasons, you can also purchase a graded benefit policy, or guaranteed acceptance policy. These policies have limited benefits for the first two policy years. After that, they are in full benefit.
Another company, if licensed in your state, that writes Simplified Issue, and Graded Benefit policies is Motorists Life.
You can ask the UA agent, if available, or call your State Insurance Commissioners Office for names of companies that write these types of policies in your state.
You could also call AARP for information. They have TV ads all the time for senior’s life insurance. You might also call the agent who wrote their Medicare Supplement policies.
I FEEL A STRONG ‘NO’. MINOR CHILDREN AND AGED PARENT CAN’T BE COMPARED FOR PROPOSING AN INSURANCE POLICY. ANYONE ATTAINED MAJORITY (OTHER THAN PHYSICALLY OR MENTALLY CHALLANGED BEYOND CERTAIL PERCENTAGE) IS SUPPOSED TO SELF FINANCE HIS POLICY AT THE OUTSET. IT IS CALLED CAPACITY TO PAY. IT IS IMPORTANT. SECONDLY INSURABLE INTEREST, ANY ONE IS EXPECTED TO HAVE INSURABLE INTERST ON HIM. YOUR MOTIVE OF INSRUANCE MAY BE QUESTIONED MORALLY( CALLED MORAL HAZARD IN INSURANCE INDUSTRY). THIRDLY AS I CAN IMAGINE THE AGE OF YOUR PARENTS MAY NOT QUALIFY THEM FOR TERM INSRUANCE AND ANY OTHER FORMS OF INSURANCE WILL BE HIGHLY EXPENSIVE. IN ANY CASE THE QUANTUM OF INSURANCE WILL BE CONSISTENT WITH THEIR CAPACITY TO PAY AND THEY WILL HAVE TO PROPOSE THE POLICY.
You can get life insurance for your parents. Most insurance companies will allow adults to purchase life insurance on their parents lives. You will pay the premiums and be the owner of the policy. That means that you control the policy options and decide who the beneficiaries are. They will have to participate by signing the application and participate in any medical exams and interviews that are required.