Can I Purchase A Final Expense Insurance Policy On My Elderly Parent?

If your parents are getting older, you may have various concerns about their health, as well as about their finances. While your elderly parent or parents may have done a good job of planning their financial future, sometimes various needs can still be overlooked. One example is the cost of a funeral and other final expenses.

Certainly, most people do not relish the idea of discussing such plans with their parents or other loved ones. Doing so, however, can be a great way to ensure that your loved one’s wishes will be carried out. It can also help to determine whether or not such expenses can be paid – and if there is a financial gap, to discuss ways in how to best move forward.

One of the best methods for paying for an elderly parent’s funeral and final costs is through a final expense insurance policy. These plans, which are typically very affordable, can provide your family with the funds that are needed when they are needed most. 

Can You Buy Life Insurance On A Parent?

While life insurance is often purchased by the person who will be the insured, it is possible to buy coverage for another individual, including an elderly parent. And, although the legal requirements for purchasing life insurance on another individual can differ from state to state, in many instances, working with a professional in the life insurance area can help you to determine the best route to take.

If you plan to purchase a regular, medically underwritten life insurance policy, it may be necessary for your parent to take a medical examination to qualify for the coverage. This, in turn, will typically require that your parent(s) submit a blood and urine sample.

But, one of the many nice benefits of the policy that you purchase being a final expense plan is the fact that most of these policies will not require your parent to undergo a medical examination to qualify for the policy.

In fact, in some cases, final expense life insurance may be what is considered a guarantee issue policy. This means that your parent will qualify for the coverage, regardless of their health condition. As long as the premium is paid, this type of coverage will also remain in force.

Why Consider Buying Final Expense Insurance On An Elderly Parent?

The purchase of final expense life insurance coverage for an elderly parent can be a smart financial move. One of the biggest reasons for this is the peace of mind that doing so can offer to you.

Today, the average cost of a funeral and other related final expenses can be in the range of $7,000 to $10,000. This is especially the case when you factor in items such as a headstone and burial plot, flowers, transportation, and the memorial service itself.

Knowing that you have a way to quickly and easily pay these expenses can be extremely beneficial, as going this route will not require you, your siblings, or other loved ones to dip into savings in order to pay – or worse, to put these costly items on credit, leaving you with a large debt to pay over time.

Final expense – also often referred to as burial insurance or funeral insurance – is designed for paying off one’s funeral, as well as the related costs that may be incurred. This can provide financial relief to their family and other loved ones who may otherwise be responsible for paying these costs out-of-pocket.

As with other types of life insurance coverage, the proceeds that are received from a final expense life insurance policy will be free of income taxation to the recipient. This means that you will have use of 100 percent of the policy’s proceeds to put towards you parents’ final needs.

In addition, while your elderly parent or parents may have the financial means to take care of their everyday living expenses, the added cost of a life insurance premium may cause them financial hardship. But, by purchasing a policy for your parents and taking care of the premium payment, you can give them the gift of coverage, while also providing yourself with peace of mind.

How Much Final Expense Coverage Is Enough?

When determining the proper face amount of coverage on a final expense insurance policy, there are some considerations that are important to keep in mind so that you will know how much protection is enough.

For example, if you and your parent (or parents) have a goal of covering most or all of their anticipated costs with a final expense policy, then it can be a good idea to contact several different funeral homes in your area (or in the area where your parents plan for their final interment) and ask how much the various services cost. Keep in mind that there can be a long list of items that are required, depending on how and where your parent(s) intend their service to be.

It can also be helpful to add some additional coverage to a final expense life insurance policy. That way, various medical expenses and / or other debts can also be paid off using these final expense funds. Before making your purchase, it can be important to discuss with your parents any other debts that they may have – and whether they have made plans for paying off these obligations with savings and / or other life insurance coverage.

How Much Does Final Expense Life Insurance Cost?

There are a number of factors that are considered with pricing a final expense life insurance policy. These include the age and the gender of the insured, as well as the amount of the coverage you are obtaining. Because the face amount of coverage on a final expense policy is quite low, this can also help with keeping the amount of the premium down in an affordable range.

In many cases, final expense life insurance is a form of permanent life insurance protection that is known as whole life. A whole life insurance policy will typically have a premium amount that is locked in and guaranteed not to increase throughout the entire lifetime of the policy. This is the case, even as the insured’s age increases, and whether or not he or she remains healthy. In fact, in most cases, the policy cannot be cancelled by the life insurance company, other than for non-payment of the premium.

What To Look For When Buying Final Expense On A Parent

When purchasing a final expense insurance policy on an elderly parent, there are several factors to consider. First, you will want to know that there will be enough protection to cover your parent’s funeral and other final expenses, as well as any ancillary items like uninsured medical and / or hospice care.

It is also important to ensure that the insurance company that you are buying the coverage through is strong and stable financially and that it has a good, positive reputation for paying its policyholder claims.

In doing research on the insurance company, it can be helpful to obtain the company’s insurer ratings from Standard & Poor’s, Moody’s, Fitch, and / or A.M. Best. These ratings are typically provided in the form of a letter from A++ to F, in a similar manner to a report card.

It is also wise to review the insurer (or insurers) that you are considering via the Better Business Bureau (BBB). That is because the Better Business Bureau will assign a grade of A to F, and it will also provide you with more details regarding any customer complaints that the company has closed out within the past three years. This can be extremely helpful when making your decision.

Comparing premium quotes on coverage can also be beneficial. This is because the amount that is charged can differ – sometimes substantially – from one insurer to another, even for the same coverage.

While doing all of this research can take a great deal of time on your own, working with an independent life insurance expert – and ideally one that has access to numerous final expense insurance carriers – can often be the best way to go.

Where To Find The Best Premium Quotes On Final Expense Life Insurance Coverage

If you are seeking final expense life insurance for a parent, and / or for yourself, it is typically best to work with an independent life insurance brokerage or agency that has access to multiple life insurance carriers. In doing so, you will be much better able to quickly and easily compare many different final expense life insurance policies and premium quotes. From there, you can determine which will work for you and your particular needs.

When you are ready to move forward with the process of purchasing final expense coverage, we can help. We work with many of the top final expense life insurance carriers in the marketplace, and we can assist you with obtaining all of the pertinent details that you will require for making a well-informed buying decision. We can do so for you directly from your computer, and without you or your parent having to meet in person with a life insurance agent. If you are ready to start the process, then just simply take a moment to fill out the form on this page.

Should you find that you still have any additional questions regarding whether or not to purchase final expense coverage for an elderly parent, as well as how the process works, and how much a policy may cost, then please feel free to contact us directly. Our experts are happy to help you with all of the important details. We can be reached via phone, toll-free, by calling 888-389-8676.

We understand that the purchase of any life insurance coverage can be somewhat overwhelming – particularly if it relates to an elderly parent. There are many variables that you want to ensure are right, and you want to know that you are moving in the proper direction. The good news is that you and your parent may have many coverage options that are available to you – and, with an ally on your side, you can find the right plan for your needs. So, contact us today – we’re here to help.