Even if you are an adult, the death of your parent can prove emotionally overwhelming in addition to being a significant financial burden. Even if you are self-sufficient, you are likely to find yourself overwhelmed by your parents’ debt and funeral expenses. You may find yourself looking for an opportunity to make up for the lost productivity while grieving. Therefore, taking out life insurance for people over 60 is a major financial decision.
Tips to make when making this valuable financial decision include
Discuss your intentions with your parents
Take the time to talk with your parents about your intentions for purchasing insurance. Some of the states expect the children to receive consent before taking out an insurance policy for their parents. Even where this is not required by the law, it is important to gain the knowledge and support of the parent to ensure the entire process moves smoothly.
Gather information for the policy
Next, you need to work with your parents to gather the necessary information that you will require to apply for the policy. Some of this information includes the Social Security number, necessary contact information, contact information for their doctors, driver’s license number and the general medical history. The insurance company to facilitate insurance quotes will use this information.
Determine the budget
You need to evaluate your finances as well as that of your parents to determine how much coverage to take out. For parents who have a large debt, you can consider taking up a policy that adequately covers the debt. Furthermore, you can opt for a policy that is about twice the amount that you are likely to spend on the funeral and burial. This will make sure the funeral is adequately covered into the future while some money will be left to assist the family with other related expenses.
Choose the right policy
You need to decide between whole life and term insurance. The whole life policy offers benefits for the entire life of the policyholder while the term insurance covers the parents over a set period. If your budget is limited, you can consider applying for the term insurance. However, older parents above the age of 60 and who have medical problems may discover the whole life policy is less expensive. You can click here for you to find the most affordable life insurance.
Meet with the company’s representatives
Meet with the representatives of your insurance company and that of your parent. In each of these cases, you stand to qualify for multiple discounts – shop between the companies to discover the best deals.
Bring documents to the parents for signing
Bring the necessary documents that require signing to the parents. The medical information forms, for example, will require the signature of the parent, even where you are paying for the policy and taking responsibility.