Most times, parents take out life insurance for their children to give them coverage in case of any mishaps. However, it is not out of place for children to purchase life insurance policies for their parents. If you are looking to buy one, here’s a guide on how to go about it.
Consult your parents
You would need the consent and approval of your parents before you can take out life insurance on their behalf. Therefore, you need to consult them before going ahead with it.
Find out if they qualify for coverage
To find out if your parent(s) are eligible for coverage, you need to apply to the insurance company. The insurer will then review specific factors such as your parent’s health history, smoking status, habits and income and medication history
Choose a life insurance policy type
If your parents are above 70 years, it is essential that you carefully decide on the kind of life insurance you want for them. There are several to choose from such as the term life insurance, whole life insurance, universal life insurance, and second to die life insurance.
Show insurable interest to the insurer
Since you will be buying life insurance on behalf of your parents, you will need to display insurable interest to the insurance company. Insurable interest means that you will suffer some financial loss at the demise of your parent(s). Once you can successfully do this, you will be allowed to place yourself as the beneficiary of the policy.
Your parents will also be required to take a medical exam at any location convenient for them.