Should You Buy Life Insurance For Your Parents [2019 Guide]

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why parents need life insurance

Above all, Parents need life insurance!! If you have kids you need life insurance, PERIOD!! I am a father, and it is completely irresponsible if your the primary breadwinner and dont have at least 10 times your income!! Especially if you have children under the age of 10!! Furthermore, if you have children under the age of 5, you need at least 15 times your income. 

Let's face it, someone just like you and me dies yesterday!! If you don't believe me just check your local obituaries. Yep, just like you and me!! In fact, they had kids, probably young kids!! What will your kids and your spouse do in the event of your death?? This is why parents need life insurance!

Here is a video that you must WATCH!!

After seeing this video, just stop procrastinating!! You are not going to live forever!! In fact, death is the only thing guaranteed in life except, the death benefit that is paid to your loved ones!

Remember, it will never be as cheap as it is now!! 

Above all, the parents financial responsibility when raising children is enormous. Furthermore, life insurance coverage is a great way to protect a family's financial burden if the bread winner passes away. In fact, if you are a stay at home spouse what are you going to do in the event of the bread winner dying? You will probably have to go out and get a job to cover child care. If you have older children you may have to cover student loans! So, How much on average does it cost to raise a child?

Stay at home parents need to be protected financially from these burdens. Buying life insurance may be the single best way to do this. For instance, a USDA study from 2015 projects a families spend about $233,610 up until the child is 18. That is about $13,000 a year!

These will cover,

  • Housing
  • Food
  • Child Care
  • Education

So the types of life insurance that is needed will depend on your personal finances. 

Cost of Raising children

How Much Does It cost to Raise a Child

What Types Of Life Insurance Is Best For A Parent

As a parent, purchasing a quality policy will depend on the life insurance company and the product you purchase. For instance, out of the 3 dozen or so variations of life insurance it really breaks down to two, permanent life insurance and term life insurance.

Types of permanent life insurance, in my opinion are not the best products for a family just starting out. The cost is about 3-4 times more expensive than term. Also depending on what your strategy is, a financial advisor can give you more insight on this. 

Types of permanent life insurance:

  • Whole Life
  • VUL

Some of these policies takes time and grows slowly. Also, these policies aren't used for just insurance only. Many times they can be used for tax deferred situations. 

life insurance for parents no medical exam

Above all, purchasing life insurance for a parent or as a parent can be one of the most important choices to make. Whether you are young or seniors over 80, getting a solid life insurance plan will financially protect your loved ones.

Getting insurance without a medical exam can be very convenient. In fact, if you have minor health issues, answering medical questions and health questions is a lot better than giving blood and urine. For instance, applying for a simplified issue life insurance can result in coverage within a few days to cover burial expenses and/or final expenses.

However, if you are trying to get life insurance for seniors over 75, then you might have to get medical exam life insurance if you need a larger death benefit to say cover estate taxes. Otherwise, a burial insurance policy might just be the best route to go. 

Here are some of the best No Exam life insurance carriers that offer this product:

  • SBLI (Up to $500,000)
  • Sagicor (Great For Seniors) also up to $1,000,000
  • Assurity Up to $500,000
  • Nassau RE

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How Much Life Insurance Should I Buy As a Parent

Is buying life insurance a worthy investment? Well if you care about the well being of your kids then yes! When is the right time to take a term insurance plan? There is no better time than today!!

In general, to reiterate from above, you want to have at least 10 times your income. That is rule of thumb. I always advocate that if you have young children, under 5, then 15-20 times income is adequate. 

For example, if you make $100,000 a year and have a 4 year old and expecting another, then a 2 million dollar policy would be sufficient.

A stay at home parent should have at least 50% of what the primary bread winner has. 

3 Critical Reasons Single Parents Need Life Insurance

If you are a single parent you are taking the burden of two. To point out, I grew up with a single parent. I don't think I seen my mother sleep from age 5-15. A single parent is sacred!! 

Here are 3 reasons why single parents need coverage:

  1. Financial Security
  2. Caregiver
  3. College

Why New Parents Need Life Insurance

Obviously starting a family is the most adoring feeling anyone can have. Notably, having your very first child changes everything. Most young adults usually have the responsibility light bulb go off. I know I did. Life just changes in that moment of time. 

To demonstrate, I always tell my clients when you are starting out try to take care of your family as soon as possible. Overall, life insurance will never be as cheap as it is when you are young. Purchasing a 30yr term at a multiple of 15 times your income will solidify your loved ones financial security. 

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As the primary breadwinner, god forbid if that days comes, you want to make sure that your kids are taken care of until they are throwing a cap and gown in the air at graduation. 

How To Buy Life Insurance For Your Parents

If you have parents who are seniors or over the age of 75 then if they past away it may cause a financial burden on you. First off, there must be insurable interest. However, if it is for funeral expenses then you can take out a policy as long as your parents are aware and agree. 

Some policies have living benefits which is great for long term care if there is a critical or a chronic illness. In these cases you will need to have the policy active before any illness is made aware of. 

Barbara Marquand, writer for nerdwallet, has a great article on affordable long term care insurance.

How to get life insurance for your parents online

Getting online life insurance is the most convenient way to purchase a policy. In fact, most sites provide an insurance calculator that requires the coverage amount and some do not require a medical exam.

PinnacleQuote Life Insurance Specialists have the capabilities of shopping consumers to dozens of A+ carriers to secure the best rate. We have the fastest process in the industry. 

We specialize in all things life insurance. Best Price, Best Carrier, GUARANTEED!!

For a more personable touch, reach out to me, 855-380-3300. 

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