Life Insurance For A Parent?

Question

I was very alarmed when my father recently told me hat he had no life insurance. He told me that it wouldn't matter because he is dead. I feel that everyone deserves a proper burial. Should I get a policy for him? How do I do that?

Answer 1

I agree with the previous answers stating that it depends on someones personal circumstances, they may have savings which would provide for everything once they are gone and so feel that further investment/cover is unnecessary.

Technically you CAN take out a policy on someone else without their permission or even their knowledge if you would suffer a definable financial loss as a result of their death. This is known as having an insurable interest, in this case the cost of a 'proper burial'. In the same way, parents can insure their children's lives (within limits of law).  However, because you would not be able to sign the health declarations (only the insured can) only a few companies would be interested and you'd end up paying silly money for it.

If you do want to have cover, it's far better if you persuade your father to take out a policy with you as the stated beneficiary for which you will pay the premium(s).

There are many different kinds and a good finacial adviser will help you decide which best suits your needs and budget. Be sure to get and compare quotes and policy details from several companies as they all vary slightly.

Answer 2

Hey,

First, I want to say that it is in no way silly that you're thinking about this. I think it's a responsible move, as I too am trying to get my 2 apathetic senior parents insured. I agree, everyone deserves a proper burial, especially our parents. There are inexpensive policies everywhere. You can go online and get quotes just as you would for car or health insurance.

I found this link very helpful: http://en.wikipedia.org/wiki/Life_insura...

Sometimes our parents are afraid or indifferent toward their own death's, which is understandable. However, what they don't understand, is that in the case of the unexpected, which often times death is unexpected (as you've expressed with your mothers death) is that their emediate families are responsible for their burial; the grief, expenses, and sometimes, outstanding debt that insues. Planning is key. Be patient and try to reassure your dad that you are trying to help; help him understand why you're considering life insurance as an option. Explain everything to him, and keep him involved in the entire process to will hopefully prevent him from feeling skeptical or hesitant.

Good luck!

Answer 3

He says it wouldn't matter? It definitely matters...if he wants the people he cares for to be taken care of properly.

There are many life insurance companies. The only one I know of personally is NorthWestern Mutual and my friend is interning there to become a salesman.

You can see their policies here.

http://www.nmfn.com/tn/insprods--life_li...

I do know that NM is one of the biggest in life insurance, so you may want to go with them.

Answer 4

You may ask your father why he would want to place the financial burden of his cremation, paying off any debts he may owe before his death, including any unforseen medical debts he may incur as he grows older upon YOU?...and your siblings if any.

I believe that is a very selfish act.

And I am sure if it was brought to his attention, that he would realize he would not want to place that burden on his daughter.

Sit down and have a heart to heart with your dad.

Answer 5

Many people have no life insurance when they are no longer supporting anybody but themselves.  First, ask him what he wants.  Does he want to be cremated? Direct burial (graveside service only) or a funeral?  Find out what the general costs are for that in your area and ask him how you are supposed to pay for it?   My great-Aunt had a funeral trust account at a bank instead of life insurance and there was enough for everything. Ask the bank how to set it up so that you have access to it once he passes on.  Prepaid funerals are also an option, but I don't know enough about them to advise on them.

Yes, you can get a policy for him, but he has to sign it.  Get a term policy for the lowest amount to cover what you think will be needed.    He definitely does not want to leave it to the state to take care of his remains!

Answer 6

The first thing to do is sit down with your father and have a "heart felt" conversation about what his final wishes would be.  From there you could discuss the cost/expense of carrying out his final wishes and how to make sure his wishes are taken care of.

He will need to be in agreement and will have to sign any life insurance application.

Based on the info you listed, he should be able to get a policy which would meet his needs and ease your concerns.

Contact your State's Department of Insurance for a list of life insurance carriers who are authorized to do business in the state.

Look at the financial rating of the insurance carrier which can be checked at the AM Best website.

When applying for the the insurance.  Be sure you are listed as a contact for receiving copies of any premium/policy notices so you can make sure the premiums are always paid and the policy does not lapse.

Answer 7

it depends on his health issues, age, and whether or not he wants one.  you cannot buy life insurance on someone who is not willing to sign the application (even if you are to own and pay for it).  it's his life, so he has to give permission for someone to insure his life.

Answer 8

Some people are reluctant to deal with life insurance. The only argument that might convince him is that if he passes away, it will be your responsiblity to find money for last expenses (burial, state taxes, etc).

If he still doesn't want to do it, try taking with a finantial planner to plan how much money he will leave and organize everything, so if anything unexpected were to happen, you guys will know what to do.

Answer 9

At 58, it's going to be more cost effective for you to just save up some money to cover his funeral costs.

Life insurance isn't really meant to pay for FUNERAL expenses - if he's got $2,000 in the bank, or a car, or a house, that will cover a cremation.  Life insurance is really meant to provide a large, lump sum for survivors dependent on his income.

It doesn't sound like he's got any dependents any more.  If not, he doesn't really have any need.  And as it gets much more expensive as you get older (the odds get shorter, ya know?) if the only need is funeral expense, there are cheaper ways to do that.

Answer 10

Your father may have plenty of assets and does not need life insurance. Most employers have at least some small life policy they provide with the other benefits. I sell group health insurance and usually offer a small life policy with the health policy.