Purchasing an insurance policy for your parents is an option if they are willing to sign an application and pass a health exam. Individuals are usually not able to take out a policy for a parent unless they are not in their right mind. A signature is required for the person that is named on the policy if they happen to be an adult. Many different type of insurance products are available to buy for a parent depending on need and circumstance.
Before a life insurance policy is issued, you will need to prove insurable interest. This basically is your need for purchasing life insurance. This is typically some type of financial loss that could occur when a parent dies. This can be funeral expenses or for the purposes of estate planning. When insurable interest exists you need to decide on a policy type.
Children Can Pay for a Life Insurance Policy for a Parent
Children can offer to pay for a life insurance policy for a parent but cannot sign the application on their behalf. Depending on the mental capacity and age of the parent, rates may be high. To do this the type of policy to purchase needs to be determined. When a parent is above the age of 50 or 60 you can obtain a term-life policy. This is a policy with a limited term that can range between 10 and 20 years. When you decide on a term-life policy the premium will be cheaper than a Whole Life or Universal Life policy.
Another type of policy that can be purchased that does not require a health exam is a simplified-issue or a quick to issue policy. This is a policy with a limited death benefit that does not require the person that is named on the policy to undergo a health exam. Contact a life insurance agent to find options that you have available.
Do Parents Require Home Care Assistance?
When parents require assistance with basic home care, a long-term care policy can be used. This policy is used to provide home care, nursing home care and arrangements for assisted living. If you worry that one or both of your parents will be be able to take care of themselves, a long-term care insurance policy is a worthwhile option.
A long-term care insurance policy is available to pay for care without having to drain savings. A policy will allow your parent to keep their current lifestyle whether they suffer from a type of physical illness, a disability or mental health impairments such as Alzheimer's disease. However, the costs of this policy will depend on a variety of factors.
The type of care that is provided by a long-term care policy will include both skilled care and personal care. If skilled care is required, services of a professional nurse or therapist are provided when a parent is in a nursing home. Parents that need help for daily activities such as bathing and dressing require the use personal care.
Nursing Home Care Could Cost $5,000+ Per Month!
Costs that are paid for a long-term care policy are based on the type of care required and where a parent resides. The cost for nursing home care can range form $3,000 to $5,000 or more per month If this cost is too much for your parent to afford, a long-term policy is available. Benefits paid from long-term care policies may range from $200 up to $300 per day. Determine the amount of coverage that is required of a long-term care policy by calling nursing homes that are local to your area.
To avoid paying the costs of long-term care out of your own pocket or the using your parents savings, a long-term care policy can be used. Paying the premium for the policy can be done by using a variety of options. A policy will pay daily benefits until the maximum limit has been reached. Keep in mind some services are not covered by this type of policy.
Services that are not covered by a long-term care policy include any pre-existing condition such as any type of illness or disability. Treatment cannot be received within a specified period prior to applying for a policy. Services are also not provided for a mental or nervous disorder except for applicants suffering from Alzheimer's disease and other age-specific disorders.
By Andre Bradley