If there is someone who will suffer financially from your parents dying, then they need a life insurance policy on them. In order to take a life insurance policy out on your parents, there are some steps that have to be taken.
- Your Parents Must Agree
- Decide How Much
- Who Owns the Policy
- Who Pays the Premiums
- Who is the Beneficiary
- Decide What Type of Life Insurance
In order to take out a life insurance policy out on your parents, there has to be consent. Unfortunately, not everyone has good intentions, so consent is absolutely necessary.
There are a number of reasons why you would need a life insurance policy on your parents. They may have some debt, a mortgage, excessive medical bills, or not enough saved to pay for funeral expenses. Use our life insurance calculator to find out how much you should take out for a life insurance policy on your parents.
The owner of the policy is able to make changes to the life insurance policy. They are able to change who the beneficiary is, change the owner, lower the death benefit, add or delete riders, and request a rating change for the insured. The thing that cannot be changed is who is insured.
In a lot of cases, the person who is insured pays the premiums, but that’s not always the case. If you are taking a life insurance policy out on your parents, then you are the payor and they are the insured.
The beneficiary of the life insurance policy is the person who receives the death benefit. The beneficiary is usually a relative that would suffer financially if the insured died.
There are a couple of options to choose from when deciding what type of life insurance to get. There is universal life insurance that is a cash value insurance and known for its flexibility. Whole life insurance covers the insured for, you guessed it, their whole life. It’s more expensive because of this factor. Term life insurance is the most popular choice as well as the most affordable. You can choose a term length and pay the premiums for that amount of time. If the insured dies during that term length, then the beneficiary will receive the death benefit.
At LifePlan Financial, we pride ourselves on our quality work, our honesty to our clients, and the reliability we provide. Getting life insurance doesn’t have to be a hassle when you use LifePlan Financial. Contact us today for any questions or get an instant term life insurance quote to get started.