Life Insurance Buying Tips

Life insurance for Parents

Filed under: life insurance,senior life insurance — Alston @ 6:31 pm October 6, 2011

Can you buy life insurance for your parents?

If your parents are of sound mind, they will need to agree to and sign any life insurance application on their lives. You can, of course, do all the research for them and bring them a contract to sign.

If you have parents who are not competent to make decisions about their coverage due to their being elderly or due to their suffering from dementia or something similar, you may be able to buy coverage for them without their consent. You will need to have the legal right to make financial decisions for them to be able to buy a senior life insurance policy on their behalf. Unfortunately, age and certain illnesses can mean that certain life insurance options will not be available to them.

As their child, you can be the beneficiary. You can also pay for their policy. You are presumed to have an insurable interest. Insurance companies will want the beneficiary to have more to lose at the insured person’s death than they will gain by the life insurance proceeds.

(Before the concept of insurable interest was used for life insurance, people purchased life insurance policies on strangers. In some cases these strangers were killed for the life insurance proceeds.)

Life insurance for young parents

Parents of young children or older children who are dependent on their parents’ income should have life insurance protection. A face amount of twenty times one’s annual income is recommended by many experts.

If you are planning to have a child, be sure to get your life policy in order before you conceive. This is because insurance companies will not allow expectant mothers or fathers to get life insurance.

In the event that the father or mother waits to get insurance and one of them dies before the baby is born, the baby will be adversely affected. He or she will have only one parent and much less money. You can prevent this from happening by addressing your need for life insurance protection before you start trying to have a child.

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