Can you get life insurance for your parents?

Purchasing a life policy for parents

Life insurance is a key part of protecting a family’s financial well-being, ensuring that loved ones aren’t burdened with unexpected expenses after a loss. For this reason, adult children may consider taking out a policy on their parents to make sure they have the financial resources needed to help manage end-of-life costs, protect family assets, and ensure stability during an emotionally difficult time.

How to get life insurance on a parent

Taking out a life insurance policy on a parent is possible—but you’ll need their written permission and be required to meet a few other requirements. Here are the key steps you’ll need to take in order to move forward:

Have a conversation

Talking about life insurance isn’t always easy, but it is important. A thoughtful conversation helps your parents feel respected and reassures them that the intention is to protect the family’s financial future. When everyone is involved in the decision, it reinforces trust and ensures shared expectations about the coverage.

Obtain written consent

Before you can take out a life insurance policy on another person—even a blood relative—you will need proof of their consent. As a precaution, insurers will typically require your parent(s) to sign both a consent form and the insurance application.

Gather information

Before completing the application with your parents, make sure you have their birth dates,  Social Security number, and other personal information handy. You may also be asked to answer health-related questions, so it’s helpful to have their medical history, a list of medications, and contact information for physicians.

Demonstrate your ‘insurable interest’

When applying, you must be able to show that you will face a financial loss if your parent dies. This is known as an insurable interest, which may include funeral expenses, end-of-life medical costs, or inherited debts.

Decide who owns the policy

Ownership is important because the policy owner controls key decisions: naming beneficiaries, accessing cash value (if applicable), making premium payments, and adjusting coverage over time. Discuss these responsibilities up-front so everyone understands who will manage the policy.

What are the benefits of getting a life insurance policy for my parents?

Since the death of a parent can be both emotionally and financially challenging, it’s common for adult children to buy life insurance for their parents. That’s because the benefits of a life insurance policy can meet a wide variety of needs:

Pay funeral costs

Funeral and other final expenses often cost $10,000 or more, which can be a hefty financial burden, especially if you don’t have time to prepare.

Related: Final expense insurance

Pay medical bills

Many of our parents will likely have health issues at the end of their lives and medical bills can add up quickly. While some will likely be covered by Medicare or health insurance, there are usually copays, deductibles, and other out-of-pocket costs that will need to be addressed.

Eliminate other debts

While children are typically not responsible for their parents’ debts, you may be legally obligated to repay loans if you are a cosigner or joint account holder.

Keep the family home

Would you like to keep your parents’ home “in the family?” If so, the death benefit of a life insurance policy can help you pay off the mortgage or satisfy any loans your parents may have taken out on the property.

Relocate a surviving parent

When one parent dies, you may need to help the surviving spouse find a new living situation. This could involve renovating your home, purchasing a smaller property, or moving them into an assisted living facility. Life insurance proceeds can help cover these costs and give your family more options.

What are the different types of life insurance policies for parents?

There are a host of life insurance policies available on the market—So how do you know which one is best? Here are a few factors to consider:

Term insurance vs. whole life

As you explore your options, one of the first decisions you’ll face is whether a term policy or a whole life policy best meets your family’s needs. Here’s how the two compare:

Term life insurance covers a set period of time—often 10, 15, or 20 years. After the time is up, the policy simply ends, and benefits will not be paid. Because of this, term policies are generally used to cover specific financial needs that will change with time, like paying off a mortgage, and may not be suitable for covering final expenses.

Whole life insurance, on the other hand, is designed to last a lifetime. The life insurance benefit is guaranteed—as long as the premiums are paid when due—so the beneficiaries can count on receiving a payout. Additionally, whole life policies build cash value—a resource the policy owner can use to meet some of the parents’ needs while they’re still living.¹ It’s important to note however, that the premiums on a whole life policy are often higher than they are for term—and may be substantially higher for elderly parents.

Does the policy require a medical exam?

Depending on the policy, a medical exam may be required. Your choice of coverage may depend on the age and health of the parent you want to insure. If health concerns make traditional underwriting difficult, you may want to explore guaranteed issue or simplified issue life insurance policies, which do not require a medical exam. Keep in mind, however, that these policies typically offer limited coverage—often $50,000 or less—and come with higher premiums than fully underwritten options. For that reason, you may be better off choosing a policy that requires a medical exam if your parents are able to complete one.

Related: Life insurance without a medical exam

Consult a financial professional

Because every family’s circumstances are unique, it can be helpful to review these options with a financial professional who can walk you through the differences and recommend a strategy that aligns with your family’s needs.

Can you get life insurance on a parent? FAQs

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¹ Accessing the cash value of a whole life policy will reduce the death benefit and available cash surrender value.