Stop wondering if you can take out life insurance on your parents, the good news is, yes, you can.
You simply have to demonstrate that you'll suffer some kind of financial loss in the event of your parents' passing.
This is called "insurable interest", and it's pretty much a given it in the case of your mother or father, or both.
Because your parents are most likely elderly, the insurance premiums will be higher, but if you compare prices from different companies, you can still find some affordable rates.
If your parents (mother and father) are in good health, with no major health issues, it should not be too difficult to obtain coverage for them, and the premiums will be lower.
Keep in mind that in order to get a life insurance policy on a parent, you'll need their consent. So, if a parent is showing signs of dementia, make sure to get it before it gets too advanced, so they still can give the consent.
Comparing rates from many different companies is the only way to make sure your are getting the most affordable and best life insurance rates.
Sometimes quotes will vary by hundreds of dollars per year from company to company, so by comparing many quotes, you'll find the cheapest rates possible for your mom and/or dad.
There are many reasons you may want to insure mom and dad. But, the most common reason is to cover final expenses (burial expenses and funeral services). This is usually a low amount policy. Final expenses insurance policies are typically up to $50,000 and don't require a medical exam.
If your parents own real estate and still have a mortgage, you may want to take out a policy to pay off the mortgage in case of their passing. You do not want to be stuck paying another mortgage.
Another reason, is to pay for estate taxes. If you parents are wealthy and own expensive real estate, you'll have to pay taxes on part of your parents estate's value, so a life insurance policy can help you pay for them. Life insurance payouts are not taxable, so they are the perfect instrument to pay for estate taxes. You should consult with a financial advisor if you have questions about estate planning.
These policies are usually of higher amounts like $200,000; $300,000; $500,000; 1 million, etc.
Average monthly pricing for a 10-year life insurance term policy for a man, non-smoker in fair health:
|65 year old male||$63.60||$121.62||$142.24||$234.95|
|66 year old male||$71.33||$138.04||$154.82||$256.55|
|67 year old male||$81.38||$156.05||$172.38||$283.50|
|68 year old male||$91.75||$177.71||$191.80||$315.87|
|69 year old male||$104.78||$202.86||$216.22||$354.57|
|70 year old male||$117.69||$229.55||$245.35||$405.13|
|71 year old male||$135.20||$261.55||$277.43||$462.20|
|72 year old male||$151.85||$295.05||$317.00||$524.58|
|73 year old male||$171.18||$337.20||$365.26||$601.35|
|74 year old male||$194.28||$382.45||$422.52||$700.45|
|75 year old male||$220.51||$435.12||$493.90||$818.40|
Average monthly policy costs for a 10 year life insurance term policy for a woman, non-smoker in good health:
|65 year old female||$53.23||$101.09||$120.75||$197.70|
|66 year old female||$57.74||$110.05||$131.20||$215.20|
|67 year old female||$62.01||$118.59||$141.42||$232.25|
|68 year old female||$67.05||$128.45||$153.83||$252.85|
|69 year old female||$73.76||$142.09||$170.62||$280.88|
|70 year old female||$83.01||$160.45||$194.20||$320.20|
|71 year old female||$99.62||$194.08||$224.70||$371.05|
|72 year old female||$114.88||$224.50||$261.45||$432.27|
|73 year old female||$131.72||$260.40||$305.22||$505.33|
|74 year old female||$150.59||$298.45||$356.74||$591.07|
|75 year old female||$172.41||$342.25||$417.38||$692.19|
Although we only show rates up to age 75 in the tables above, in certain cases, your parents may still get coverage at age 76, 77, 78, 79. Sometimes, even in their eighties: 80, 81, 82, 83, 84, 84, 85.
In summary, no matter your parents age - over 60, over 65, over 70, over 75, over 80 - it is still possible to get life insurance on them. Insurance companies will look mostly at their present health status and at any past health issues they may have had. Of course, the older they are, the more money it will cost.
Here's a good video on the subject of getting life insurance on your parents, no matter if they are healthy or sick:
Click Here for life insurance rates for your mother and/or father!