Some of the most frequently asked questions we get about buying life insurance for parents.
If you have a question that is not listed below, please let us know. Call (915) 255-9077 or leave a comment below or send us an email to info@armandowinsurance.com with your questions.
Q: Can I buy a policy on my parents?
A: Yes you can. It’s quite common for kids to purchase coverage on their mom or dad. Even if your parents have a policy now, you still take out another one on them.
Q: Do I need their consent to buy life coverage on my parents?
A: Yes you most certainly do. Whenever you buy life insurance on any adult you would need their consent.This rule applies even if you have power of attorney over them.
Q: Can I take out a policy on my grandparents?
A: You absolutely can! Everyday we help grandchildren secure life insurance on their grandparents.
Q: What is the difference between the owner and beneficiary?
A: The beneficiary of a life insurance policy is the one who will receive the proceeds of the policy upon the passing of the insured.
The owner of a policy is merely the person or entity that is in control of the policy. Only they can make changes to the face amount, beneficiaries, or any other aspect of the policy.
Q: Can I name more than one beneficiary?
A: Yes you can! You can have an many beneficiaries as you want and assigned a percentage rate for each one that will add up to 100%. Example Beneficiary 1 – 30% + Beneficiary 2 – 20% + Beneficiary 3 – 40 % + Beneficiary 4 – 10% = 100%. Furthermore, you can also name as many backup (contingent) beneficiaries as you’d like too.
Q: Why is Life Insurance more expensive for my Parents?
A: The older the insured is; the more it will cost.Your parent’s health is not guaranteed. The older we get a bad down turn in health conditions, it could impact rates and/or the eligibility altogether. A healthier person (low risk) will pay less than a person with health conditions (high risk).
If you want to pay less, have coverage sooner than later, and have peace of mind.
Get your parents life insurance coverage now.
Q: Why should I buy Life Insurance for my Parents?
A: If you believe you need money to pay for an expenses, such as funeral, debts, medical, or mortgage that may arose specifically because your parents passed on. If your parents currently don’t have funds or a plan specifically to pay for their final expenses, you really need to get a policy on them.
Q: What type of Life Insurance should I buy for my Parents?
A: You 1st have to determine your parents financial and debt situation, Income + Pension + Life Insurance + Investments + other – credit card debt – mortgage balance – medical bills – car loans = + or – gap.
2nd determining factor is your parents age.
3rd Buy a Term (Temporary Coverage for 10, 20 or 30 years) or Permanent (Whole Life or Universal Life). You should only buy a term life plan if your goal is to cover a temporary liability that will end.
Note – Very difficult to get a 30 year Term Life Insurance policy for a person who is older than 60 years old from most companies. If your parents are older than 60 years old and need a life insurance policy most likely the only life insurance policy they will qualify for is a Whole Life or Universal Life policy.
Q: What Life Insurance company should I consider?
A: Find the best life insurance policy for parents, it’s imperative that you work with an independent agent because only they can compare offers from dozens of insurance companies. They’ll simply match you with whichever company suites you best. An independent agent can save you precious time, you avoid calling 3 – 5 different companies. An independent agent can provide a detail side by side comparison of the best insurance companies based on your parents age, health, and coverage needs.
Q: What health information do I need to know or provide about my parent(s)?
A: Your parent’s health history is the single most influential factor that determines which companies will accept them, exactly what the price will be, and ultimately which one is best for them.
Important information you need to know.
► Height and weight
►Tobacco and alcohol usage
► Past & present prescription medications (dosage, how often taken)
► Past & present diagnosed conditions such as high blood pressure, COPD, diabetes, cancer, etc (find out date they were diagnosed).
► Prior major events such as heart attacks, strokes, hospitalizations, cancer, etc. (find out date they occurred).
►Any high-risk habits such as sky diving, rocking climbing etc.
►Details on any driving violations within the last 5 years.
Q: My parent is really sick with no Life Insurance, can I still find something for my parent?
A: Yes. Your only option might be a Final expense life insurance. Final Expense policy is a life insurance policy whereby the proceeds are meant to pay for end of life costs such as funeral and other burial expenses. Coverage amount is limited to $2,000 to $50,000 for a Whole Life policy.
Q: Do I have to be present to fill out the application?
A: You and your parents could live in totally separate states and still buy life insurance on them. Many life insurance companies today have electronic application processes in place that make this possible.
Your options are Postal Mail, Voice Signature, and Email.
Postal Mail – Paper application to collect information and signature.
Voice Signature – the insurance company and/or agent will collect all your information over the phone.
Email – the insurance company or agent will send out two emails. One to you, and one to your parents. Basically, you’ll sign the application by clicking a few buttons.
Q: How many companies can you quote?
A: We can provide rates from 3 to 10 insurance companies after we know detail information about your parents.
If you have a question(s) that is not listed above, please let us know. Call (915) 255-9077 or leave a comment below or send us an email to info@armandowinsurance.com with your questions.
