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Whether you’re an adult caring for your parents, or a new parent caring for young children, life insurance policies for parents can help create financial stability and peace of mind. It can be helpful to review how life insurance works before applying for any plans.
Essentially, the policyholder will pay scheduled premiums to keep the policy active. In exchange, the life insurance company will pay the policyholder’s beneficiary a sum of cash after they pass, otherwise known as the death benefit. The amount of coverage and how it’s paid can fluctuate depending on the type of life insurance plan you choose.1 Read on to learn whether you can get life insurance for your parents, some reasons to do so, and how to get life insurance for parents.
Yes, you can get life insurance for your parents or take out a policy for yourself. However, you must get the parent’s consent before going down this route. As an adult child, you may be able to receive some of the death benefit if your parent agrees and lists you as a beneficiary. As a young parent, getting life insurance early can help provide financial security for your loved ones after you pass.2
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Here are some reasons why it may make sense for you to get a life insurance policy for your parents:
Before taking out life insurance on parents, there are a few steps you’ll need to follow, like needing their consent in the decision. The steps below are for adult children taking out life insurance on their parents. If you are a young parent, you can purchase a life insurance plan for yourself.
1. Get your parents’ consent: After verbally getting your parents’ consent, they’ll need to sign the application physically eventually. You also may need to provide how their death would financially impact you.2
2. Figure out their coverage needs: Assessing any debts and the income goals for the family can help you determine how much life insurance coverage you’ll need in the future.
3. Choose a life insurance policy and company: Aflac offers term, whole, and final expense life insurance. However, it’s important that you do your research and find a plan that aligns with your needs.
4. Fill out an application: From here, you’ll have to fill out an application for the life insurance policy, and the parents may be asked to take a medical exam, depending on the company.2
5. Get approved and start paying premiums: Once the life insurance company approves the plan for your parents, you’ll begin paying regularly scheduled premiums, and the plan will become active.
Now that you know how to get life insurance for parents, let’s discuss their options:
Term life insurance is a plan where you must decide how long you’ll need coverage. Typically, you can choose between 10, 20 and 30 years. The policyholder must pass during that term period for the beneficiary to receive the death benefit.2
Typically, term life insurance is less expensive, so this may be a good option for those who want to save money upfront and have a fairly good idea of future timelines.2
Whole life insurance is a type of permanent life insurance. This means the beneficiary will receive the death benefit regardless of when the policyholder passes.2 While these plans can be more expensive, they do guarantee benefits.
Lastly, Final expense life insurance is specifically designed to help support end-of-life costs. This can look like funeral expenses, legal and accounting charges and out-of-pocket medical bills. These life insurance plans can help make a painful transition feel a little more supportive.3
Getting a life insurance policy for your parents is a big decision that can yield many helpful outcomes. Remember, it’s a decision you should all make together. Chatting with an agent can help you decide which life insurance plan is best for your family’s needs.
1 Investopedia - Life Insurance What It Is, How It Works, and How to Buy a Policy. Updated February 20, 2024. Accessed February 26, 2024. https://www.investopedia.com/terms/l/lifeinsurance.asp.
2 Investopedia - Best Life Insurance for Parents of 2024. Updated January 02, 2024. Accessed February 26, 2024. https://www.investopedia.com/best-life-insurance-for-parents-5088231.
3 Investopedia - What Is Final Expense Insurance. Updated Aug 20, 2022. Accessed February 26, 2024. https://www.investopedia.com/final-expense-insurance-4801018.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
68000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400.65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series: Whole: In Arkansas, Delaware & Oregon, Policy Q60100M. In Idaho Policy Q60100MID. In Oklahoma, Policy Q60100MOK. In Texas, Policy Q60100MTX.Q60000 series: Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
Final Expense insurance coverage is underwritten by Tier One Insurance Company. The life insurance policy described herein contains an optional Accelerated Death Benefits Rider that is intended for favorable tax treatment under Section 101(g) of the Internal Revenue Code. Aflac does not give legal or tax advice. Please consult with a qualified legal, tax, and accounting advisor before engaging in any transaction. In AR, AZ, ID, OK, OR, PA, TX and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
This is a brief product overview only. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions. For complete details, including availability and costs, please contact your local Aflac agent.
Receipt of accelerated death benefits may affect eligibility for public assistance programs. Benefits may also be taxable, and are not expected to receive the same favorable tax treatment as other types of accelerated death benefits that may be available.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac does not offer Universal or Variable Universal life insurance.
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