A life insurance policy helps provide and maintain financial stability after death. Suppose you want to purchase a life insurance policy for your parents. In that case, you should consider buying one that will cover their long-term expenses and pay their debts. In this guide, you will find information about various life insurance policies, which will aid you in purchasing the best life insurance policy for your parents.
The Best Life Insurance Policy for Your Parents
Most financial experts recommend the following life insurances for parents based on their unique properties:
• Mutual of Omaha: If you want customized coverage, this life insurance is the best for you.
• Prudential: If your parents have a chronic disease, this life insurance is the best for them.
• Liberty Mutual: This is the best policy to purchase if you want faster coverage for your parents.
• Northwestern Mutual: This is the best life insurance policy company.
• State Farm: If you want to save more money by bundling the insurance coverage, this is the best coverage to buy.
Can You Purchase Life Insurance Policy for Your Parents?
A solid financial plan for your parents is good, but they must agree to purchase a life insurance policy. You cannot purchase a life insurance policy for your parents if they don’t know about the policy purchase. You must have their consent since they must personally sign the insurance policy.
Once you get their consent, you have provided a way of protecting them in the future, replacing their lost income and paying off their future expenses and debt.
Type of Life Insurance Policy to Purchase for Your Parents
There are various life insurance policies available, but you need to select the best policy that will meet your parent’s needs. Let’s briefly look at these types of life insurance policies.
Term life insurance
This life insurance policy is the most affordable but only works for a few years, also known as the term. The insurance coverage continues until the covered parents die or till the term ends once you pay the premium. Suppose your parents live beyond the policy term, the insurance policy will expire, and they will no longer receive benefits.
Guaranteed Life Insurance
This life insurance policy doesn’t require any medical examination. Therefore, it is the best plan if your parents have underlying health conditions since they won’t be turned down if they have this plan. Parents with health problems don’t qualify for a traditional life insurance policy. However, this policy is the most expensive, with a low death benefit.
Permanent Life Insurance
This is also termed whole life insurance because it provides insurance coverage to your parents until their death. Permanent life insurance has lifetime coverage and cash value components.
Final Expense Life Insurance
This insurance covers the funeral and related expenses after death, together with permanent life insurance.