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Whether you’re an adult caring for your parents, or a new parent caring for young children, life insurance policies for parents can help create financial stability and peace of mind. It can be helpful to review how life insurance works before applying for any plans.
Essentially, the policyholder will pay scheduled premiums to keep the policy active. In exchange, the life insurance company will pay the policyholder’s beneficiary a sum of cash after they pass, otherwise known as the death benefit. The amount of coverage and how it’s paid can fluctuate depending on the type of life insurance plan you choose.1 Read on to learn whether you can get life insurance for your parents, some reasons to do so, and how to get life insurance for parents.
Yes, you can get life insurance for your parents or take out a policy for yourself. However, you must get the parent’s consent before going down this route. As an adult child, you may be able to receive some of the death benefit if your parent agrees and lists you as a beneficiary. As a young parent, getting life insurance early can help provide financial security for your loved ones after you pass.2
Don’t wait until it’s too late. Help cover yourself and your family with affordable coverage from Aflac.
Here are some reasons why it may make sense for you to get a life insurance policy for your parents:
Before taking out life insurance on parents, there are a few steps you’ll need to follow, like needing their consent in the decision. The steps below are for adult children taking out life insurance on their parents. If you are a young parent, you can purchase a life insurance plan for yourself.
1. Get your parents’ consent: After verbally getting your parents’ consent, they’ll need to sign the application physically eventually. You also may need to provide how their death would financially impact you.4
2. Figure out their coverage needs: Assessing any debts and the income goals for the family can help you determine how much life insurance coverage you’ll need in the future.
3. Choose a life insurance policy and company: Aflac offers term, whole, and final expense life insurance. However, it’s important that you do your research and find a plan that aligns with your needs.
4. Fill out an application: From here, you’ll have to fill out an application for the life insurance policy, and the parents may be asked to take a medical exam, depending on the company.5
5. Get approved and start paying premiums: Once the life insurance company approves the plan for your parents, you’ll begin paying regularly scheduled premiums, and the plan will become active.
Now that you know how to get life insurance for parents, let’s discuss their options:
Term life insurance is a plan where you must decide how long you’ll need coverage. Typically, you can choose between 10, 20 and 30 years. The policyholder must pass during that term period for the beneficiary to receive the death benefit.6
Typically, term life insurance is less expensive, so this may be a good option for those who want to save money upfront and have a fairly good idea of future timelines.7
Whole life insurance is a type of permanent life insurance. This means the beneficiary will receive the death benefit regardless of when the policyholder passes.8 While these plans can be more expensive, they do guarantee benefits.
Lastly, Final expense life insurance is specifically designed to help support end-of-life costs. This can look like funeral expenses, legal and accounting charges and out-of-pocket medical bills. These life insurance plans can help make a painful transition feel a little more supportive.9
Getting a life insurance policy for your parents is a big decision that can yield many helpful outcomes. Remember, it’s a decision you should all make together. Chatting with an agent can help you decide which life insurance plan is best for your family’s needs.
1 Investopedia - Life Insurance What It Is, How It Works, and How to Buy a Policy. Updated Dec 22, 20233. https://www.investopedia.com/terms/l/lifeinsurance.asp. Accessed Jan 23, 2023.
2-8 Investopedia - Best Life Insurance for Parents of 2023. Updated Dec 15, 2022. https://www.investopedia.com/best-life-insurance-for-parents-5088231. Accessed Jan 23, 2023.
9 Investopedia - What Is Final Expense Insurance. Updated Aug 20, 2022. https://www.investopedia.com/final-expense-insurance-4801018. Accessed Jan 23, 2023.
For Aflac insurance, coverage is underwritten by Aflac.
This is a brief product overview only. Coverage may not be available in all states, including New York. Benefits/premium rates may vary based on plan selected. Optional riders are available at an additional cost. The policy has limitations and exclusions that may affect benefits payable. Refer to the policy for complete details, limitations, and exclusions. For costs and complete details of the coverage, please contact your local Aflac agent.
Term and Whole Life: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, and Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400 and Riders: ICC1368050, ICC1368051, ICC1368052, ICC1368053, ICC1368054, ICC1368055. Not available in New York. Final Expense: In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Not available in New York.
Content within this article is for informational purposes and does not constitute legal, tax or accounting advice regarding any specific situation. Aflac cannot anticipate all the facts that a particular employer will have to consider in their benefits decision-making process. Aflac does not offer universal life insurance, but we can point you toward our whole life insurance policy if you have different coverage goals in mind. Chatting with an agent about your options may make this decision easier.
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