Can I Buy Life Insurance on My Elderly Mom or Dad?

Life Insurance on Elderly Parents:

Can I Buy Life Insurance on My Elderly Mom or Dad? Yes, you can, and since there is an insurable interest it would be very straightforward. Purchasing a life insurance policy on elderly parents is a wise idea. Although no one wants to think about their parents passing, it is more likely that parents pass away before their children. You have every right to even fear this thought and want to avoid thinking about it. However, there are many facts that suggest no matter how uncomfortable this topic might be for you, you do need to consider life insurance on your elderly Mom or Dad.

Losing a parent brings us tough times, but having life insurance coverage allows us to focus on grieving and take away the financial burden. There are many benefits to having a life insurance policy on elderly parents.

To cover the cost of final arrangements.

The costs of funeral services are steadily increasing. Funeral expenses are higher than they have ever been and they are going to increase every year. There are so many costs attached to a funeral service, for example, viewing and burial, basic service fees, transporting remains to a funeral home, a casket, embalming, and other preparation. These expenses can easily add up and cost somewhere between $7,000 t0 $20,000. Considering that losing a parent will put everyone in a very emotional state, the financial burden should not be added to that; therefore, life insurance on elderly parents is a necessary purchase to ease up the financial burden.

To help pay for their medical bills.

Elderly parents tend to have high medical bills in the last few years of their lives. Life insurance on elderly parents allows covering some of the expenses that might have been left behind. Even though we have a healthcare plan in Canada that covers some medical expenses, there are so many expenses that it does not cover. There also might be the nursing and senior home expenses that need to be covered upon parents passing. All these expenses can add up quickly to a very significant amount and the financial burden would be more than many of us can handle.

To move the surviving parent.

When one parent passes away it might be very difficult for the surviving parent to continue to live in the same dwelling. Therefore, many may consider taking their serving parent in and having them live with them. Others may consider moving their surviving parent to an assisted community. No matter which path is taken to help the surviving parent, there will be some financial responsibilities. In order to assure that all the financial responsibilities can be handled to care for the surviving parent, life insurance is the best solution to ensure meeting those responsibilities.

To pay the estate tax.

Life insurance on elderly parents enables their heirs to meet the tax liabilities after parents passing. You may have heard that we pay the most taxes when we die, and that is very true. Upon parents’ death, their assets will be considered disposed of and will be added to their final income tax. Depending on how many assets the parent has and what those assets are the estate will be liable to pay for them. This process can take a long time and if the heirs do not have the financial means to meet the financial liabilities assets will be sold at market value to pay for those liabilities. This long process includes probate and legal fees, and it can be done much faster if parents have a life insurance policy.

Other benefits of Life insurance on elderly parents:

There are many other reasons to consider life insurance on elderly parents such as if they have dependents that you will be responsible for after their death or if they always wanted to leave a legacy which can be a really nice sentiment and something to ensure their names live forever.

In conclusion:

There is no denying the need for life insurance on elderly parents, but that policy may be expensive due to the elderly parent’s age. Since age is one of the most important life insurance price factors, many may give up and think that they will not be able to afford it. However, you can always compare rates among insurance companies and find a policy that is within your budget.