Can you get life insurance for your parents?

sffYou should start by exploring your parent or parents' options for life insurance, including the policy types and death benefit amounts available, as well as the costs of each quoted policy:

• Life insurance types: If your parents are younger and healthier, the full range of life insurance policy options may be available. That includes term life, whole or universal life, and final expense policies.
• Death benefit amount: With older parents who aren't in good health, your possible death benefit will likely be smaller. You may be limited to the amount equal to your insurable interest. For younger and healthier parents, you may qualify for policies with a larger death benefit.
• Policy cost: Your life insurance cost will generally go up the older and less healthy your parents are when you apply. The rate won't factor in your age or health; it's only affected by the person being insured.

Learn more about term life insurance, whole life insurance and universal life insurance policies.

Once you've found a policy you and your parents are comfortable with, you can apply for coverage. If both of your parents are seeking life insurance, they'll have to submit separate applications. Your insurer will have your parents' fill out a health questionnaire asking for their:

• Name and age
• Current or past medical conditions
• Medications
• Family medical history
• Whether they smoke or used to smoke
• General lifestyle habits, such as how often they drink, exercise, etc.

The insurer may also have your parents' undergo a physical exam, which typically includes blood work, urine sample, blood pressure measurements, and other basic assessments. A life insurance medical exam can typically be completed at home by a paramedical professional.

Once the insurer has all the information they need, they will send it to their underwriting team to determine your parents' eligibility, coverage amount, and premiums, which may take several weeks. Learn more about preparing for a life insurance medical exam.

Once the insurer approves your application, you should review the details of the policy, including:

• The named insured: This should be your parents.
• The beneficiary: This should be you.
• The policyholder: You can choose to be the owner of the policy if you plan to pay the premiums yourself. You can be responsible for the premium payments to prevent the policy from lapsing, especially as a beneficiary with insurable interest. If not, your parents will be responsible for the premium payments.
• Death benefit & premiums: Verify that the death benefit or payout fits your needs, as well as making sure the premiums work for your budget.

If you're satisfied with the policy, then let your insurer know and you can finalize the policy