This is more than the common question I read around a lot, and you should know that a life insurance plan for a parent is really important, that’s why answering your questions about life insurance is important, it provides important financial protection to the children after the parents are gone. Also, it’s really helpful when it comes to post-death expenses. But putting life insurance on your parents is not as simple as it sounds, and today I’m going to explain to you why.
Life insurance offers an amount of money, commonly referred to as a death benefit, that the chosen beneficiary can use after someone dies. It can help them access money when they need it and will provide you with peace of mind. Understanding life insurance helps you to plan for the future and find a policy that’s best for you and your family.
In case your parents are elders, I have a blog post with useful information on getting life insurance for elderly people, you can read it here.
Can You Put Life Insurance on Your Parents?
If you’re wondering “Can I get life insurance on a parent?” the short answer is yes, you can put life insurance on your parents, but you’ll need their consent. Putting life insurance on your parent without their consent is considered insurance fraud.
When you’re getting life insurance for someone, the person that will get their life insured needs to sign the application and give their consent. Forcing someone to sign an application form for life insurance is fraudulent and will be punished by the law. If you’re planning on putting life insurance on your parents without their consent, then the answer is no, you can’t get life insurance on them without telling them first.
Educating parents on life insurance
Usually, parents won’t get life insurance due to the misinformation about the topic, so, if you’re worried about your finance you will need to talk with your parents about it, without forcing them, teach them why getting life insurance is a positive thing and the many benefits it can have.
Like how the policy can be used to cover final expenses, pay estate taxes, and even medical bills after they are gone. Also, the death benefits can be used to pay the mortgage, help their children with their education and pay for day-to-day expenses.
After you have their consent, you can move on to choose how much life insurance should a parent have.
How much life insurance should a parent have?
In those cases, life insurance is also used to replace the income you provide to your dependents after you are gone, and this income and the expenses influence a lot how much life insurance should a parent have. It’s recommended that a parent buy at least 10 to 30 times of their annual salary.
But you need to consider other things like mortgage and other debts, savings, everyday spending, and final expenses, and you should anticipate future expenses children could have.
I highly recommend that you contact a life insurance company specialist on family or life insurance for parents, for example, Fabric, they are perfect for anyone but especially for families and parents. They offer instant decisions on top of affordable policies with a combination of modern online applications, also you can get quotes too and make the process smooth.