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5 Tips to Buy Life Insurance for Your Parents in 2020
Jun 10 2020

5 Tips to Buy Life Insurance for Your Parents in 2020

To buy life insurance for your parents in 2020 is possible but still you may have a tough time finding the best life insurance policy.

Life insurance is one way to provide financial stability for you after your parents die. Understanding how you can find and buy the best senior life insurance for your parents is important for both of you.

There are some worthwhile options available and, in this article, you will see a list of tips to help you find the best policy, see prices, and understand how the application works.

Keep reading or click on one of these quick links below to jump to the section that interests you most.

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  • 1. Obtain your parents’ consent
  • 2. Gather info about their health
  • 3. Establish how much you want to pay
  • 4. Select the right policy
  • 5. Don’t postpone

1: Obtain your parents’ consent

You cannot buy any form of life insurance on someone else even if they are your parents without their consent. Your parent who is “the insured” must agree to the policy.

Even if you are the owner of the policy and you are going to be the one paying for the life insurance on your parents, you still need their consent.

For this reason, you definitely have to speak to your mom or dad or whoever you want coverage on, and ensure they are on board with you taking out the protection for them. Most of the time it will not require much of their time and effort, but again they will need to be involved. Their involvement will only consist of answering some health questions and completing an e-signature.

So, save yourself some time and headache and ask mom and/or dad first.

Plus, there is no need for you to wait until you go visit one of your parents before buying coverage on them. You can do it any time anywhere!

Not long ago, you had to physically sign papers which meant you and your parents would both need to be in the same place at the same time.

Now, you do not need to be physically with them to apply for they coverage. You and your parents could live in totally separate location and still buy life insurance on them.

2. Obtain info about your parents’ health

Your parent’s health is the most influential factor that determines which companies will accept them, exactly what the price will be, and ultimately which policy is best for them.

Before talking to an financial advisor try your best to become as familiar as you can regarding your parents’ health history. This will allow your broker to do their job to find you their best life insurance plan.

You should try to obtain the following:

  • Past & present prescription medications (the more you can get the better)
  • Past & present diagnosed conditions such as high blood pressure, COPD, CHF, diabetes etc (find out when they were diagnosed)
  • Prior major events such as heart attacks, strokes, hospitalizations, cancer, etc. (find out when they occurred)
  • Height and weight today
  • Tobacco and alcohol usage
  • Any high-risk habits such as sky diving, rocking climbing etc.
  • Details on any driving violations within the last 10 years

3. Establish how much you can pay

You may want to have a certain amount of death benefit on your mom or dad, but the question is… can you afford it?

Don’t panic with the fact that your budget won’t allow you to purchase what you want.

Adapt!

And remember: some life insurance coverage on your parents is much better than no coverage!

It’s better to have some money rather than no money even if that amount of money is less than you’d like, right?

At the end of the day, you’re buying life insurance on your mom or dad because you want the money to be used for something (paying a debt, funeral expenses, paying the last tax bill, etc.).

4. Select the right policy

life insurance policy

As you may know, there are many kinds of life insurance policies available and they all function differently.

Everybody has different goals in mind which is why there is no one size fits all type of life insurance policy.

Think about: some people want a life insurance to pay off a mortgage or other debt. On the other hand, some people want life insurance to cover final expenses.

For this reason, it’s vital that you select an appropriate type of life insurance for your parents that is best suited to achieve your goal.

Life insurance can be broken down into two main categories:

There’s permanent protection and temporary insurance coverage.

Each of coverage have their pros and cons and may be used for different objectives.

If the need is permanent, your life insurance should be too.

A permanent life insurance plan will be with you for your entire life. It will not expire the way term insurance does.

The draw back with permanent life insurance is that it costs more than term insurance, but that’s because the insurance company will 100% have to pay a claim one day.

You should buy a term life insurance policy if your goal is to cover a temporary liability that could end before your parents pass away.

If the need is temporary, as example: mortgage loan, car loan, other financial debt or income replacement – then and only then you should buy a policy that is also temporary.

In general, most all term insurance ends at shortly after the insured turns 85. Here’s the bottom line.

If you have a need that is permanent, you should not buy a term plan. Do not be allured by the lower cost of a term plan when you have a permanent objective. The money you are “saving” each month won’t help you when the policy is not there when you need it most because it already expired.

5. Don’t postpone

When it comes to life insurance for your parents, it pays to be proactive. You simply may not benefit by postponing.

So, if you need or want life insurance for your parents, do it now. Later, you’ll be glad you did.

Consider the following:

  1. The older the parent is, the more it will cost their protection.
  2. Your parent’s health is not guaranteed. If they experience a medical issue, it could severely impact the price and/or the eligibility.
  3. It may be impossible to avoid a full two-year waiting period. There are some very high-risk health issues where will qualify your parents for a two years waiting period. In these situations, you want to start chipping away at the waiting period as soon as you can.
  4. Life gets busy, and if you put this off, it may be years before you get back around to it. Don’t let it escape you without acting! You never know when you’ll remember to do it.

By the end, if you want to pay less, have coverage sooner than later.

If you want to have peace of mind, don’t put this aside.

Get your parents life insurance coverage now.

Clarify if they are on board with doing the policy. Because, you must have their consent. There are no exceptions to this rule.

In addition, get as much info as you can about their health.

If you want to see some quotes you have two options. First, you can run quotes using the quote tool right on our website. You’ll see prices from lots of different carriers.

Second, you can call us and talk with a financial advisor to receive personalized advice and custom quote.

PROTECT THE ONES YOU LOVE!

We have helped Quebec seniors compare quotes from 15 of the Canadian’s best insurance companies. Book  a free consultation with a licensed financial advisor and find out how easy it is to get the right life insurance coverage for your parents. 

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HAVE QUESTIONS?

If you have questions regarding a life insurance coverage and quote for your parents,  schedule your 30 minutes free call, now. Pick the time and date that suits you best.

Financiallysecure’s content is meant for informational purposes only and should not be considered medical, legal, or financial advice. 

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