As your parents get older, you might start thinking about the future. If one or both of your parents were to pass, how would it affect you financially?
While it can be uncomfortable to think about your parents passing, life insurance can provide peace of mind. Your parents’ policy can help you cover end-of-life and other expenses so you can focus on honoring their memory.
But what if your parents don’t have a policy? Can you purchase life insurance for parents over 60?
While it’s usually easier and less expensive to obtain a policy when you’re younger, options are available for older adults. Whether you’re helping your parents research life insurance or you want to take out a policy on their behalf, here’s how to begin your search.
What to Consider When Looking for Life Insurance for Your Parents
Looking for a life insurance policy for your parents is similar to looking for a policy for yourself, with some added factors. Here are a few questions to consider to help you find the right policy for your parents.
How Is Their Health?
Aging is a natural part of life. As people get older, their health may decline, some at a faster pace than others. Accordingly, older people often have a harder time obtaining life insurance.
Due to their age and potential health challenges, older adults generally pose a greater risk of death. So, most insurers require a medical exam before they issue a policy. Depending on your parents’ age and health status, they may not qualify for a traditional life insurance policy.
Who Will Own and Pay for the Policy?
In most cases, people purchase and pay for their own life insurance policies and name someone else as the beneficiary. Your parents may plan to take this route. But as long as you have an insurable interest in someone, you can take out a life insurance policy on them and pay for it yourself. If your parents are concerned about insurance costs, you may want to discuss this option with them.
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What Insurance Options Are Available?
While the same basic life insurance options are available for people over 60, qualifying for and affording new policies may be challenging. Still, it’s good to explore all available options.
Term Life
Term life policies are generally the least expensive plans if your parents still qualify. Most insurers only offer term policies to people up to a certain age, typically age 80.
Whole Life
Whole life coverage can be more expensive than term life insurance, but it offers lifelong protection as long as premiums are paid. These policies can also build cash value and don’t have maximum age limits.
Guaranteed Acceptance
If your parents have health concerns preventing them from qualifying for a traditional life insurance policy, guaranteed acceptance insurance can be a good choice. This insurance doesn’t require a medical exam, and the premium is based on your parents’ age and coverage amount. This policy may allow your parents to get the coverage they need even when no other options are available.
Burial Insurance
Burial insurance provides a minimal amount of coverage specifically intended to cover burial and funeral costs. These policies are typically less expensive than policies with larger benefits, and they can protect you from the financial burdens final arrangements can bring.
Finding the Right Life Insurance for Parents over 60
The right policy for your parents depends on their financial goals, why they want life insurance, and what they qualify for. If you could benefit from having a financial professional assess your family’s situation, don’t hesitate to reach out to one for assistance. A Colonial Penn agent can answer your insurance questions so you can decide what insurance might work for you and your parents.
Insurers and their representatives are not permitted by law to offer tax or legal advice. The general and educational information here supports the sales, marketing or service of insurance policies. Based upon individuals’ particular circumstances and objectives, they should seek specific advice from their own qualified and duly-licensed independent tax or legal advisors.
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