You can buy life insurance for your parents if you depend on them financially and have their consent and participation in the application process.
By
Tory CrowleyTory CrowleyAssociate Editor & Licensed Life Insurance AgentTory Crowley is an associate editor and a former licensed insurance agent at Policygenius. Previously, she worked directly with clients at Policygenius, advising nearly 3,000 of them on life insurance options. She has also worked at the Daily News and various nonprofit organizations.&Amanda ShihAmanda ShihEditor & Licensed Life Insurance ExpertAmanda Shih is a licensed life, disability, and health insurance expert and a former editor at Policygenius, where she covered life insurance and disability insurance. Her expertise has appeared in Slate, Lifehacker, Little Spoon, and J.D. Power.
Reviewed by
Maria FilindrasMaria FilindrasFinancial AdvisorMaria Filindras is a financial advisor, a licensed Life & Health insurance agent in California, and a member of the Financial Review Council at Policygenius.
Updated|5 min read
Expert reviewedExpert reviewedThis article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.Learn more about oureditorial review process.
You can purchase life insurance for your parents. However, it can be complicated to take out a life insurance policy on someone other than yourself even when that person is related to you. You’ll need your parents' consent and participation in the application process to buy a life insurance policy for them.
When you buy life insurance for yourself, you’re both the policyholder — or owner — and the insured person on that policy. If you buy life insurance for a parent, you’ll be the owner and your parent will be the insured. If the owner and the insured are two different people, the policy owner has to prove that they'll suffer financially if the insured dies — a term called insurable interest.
When can you buy life insurance for your parents?
You can buy life insurance for your parents if they’re no older than 85 — and you need to be at least 18 years old. Aside from that, there are no other special restrictions for buying life insurance for a parent.
What’s the process for buying life insurance for your parents?
When you meet with a licensed agent to apply, both you and the parent you’re buying life insurance for will need to speak with the agent. And you’ll both need to sign the application documents.
To get life insurance, your parents need to be mentally and legally competent. If you’re their power of attorney, you won’t be able to buy a life insurance policy for them.
What does life insurance for your parents cover?
People usually get life insurance coverage for a parent to cover any financial costs they’ll incur when their parent dies. These could include:
Cost of childcare or any domestic help, if parents help in this way
Cost of preparing their home for sale.
What do you need to buy life insurance for your parents?
In order to buy life insurance for your parents you’ll need to demonstrate some things to the insurance company, including insurable interest, consent from your parents, legal competence, and some personal information.
Insurable interest This means you need to prove you’ll be negatively financially impacted if the parent you’re buying life insurance for passes away.
Consent from your parents No one can get a life insurance policy on someone else without their permission. The parent you’re buying life insurance for will need to participate in the application process, and demonstrate to the insurance agent that they understand and want the policy.
Legal competence Your parent has to be able to sign the documents of their own accord, and may not use a Power of Attorney.
Personal information Both you and the parent you’re buying life insurance for will need to provide information like name, address, and Social Security number. Your parent will also have to provide information about their lifestyle and medical history.
You’ll still have the option to pay for the policy if you list your parent as the owner. They can list you as the payor and you’ll be responsible for covering the policy’s premiums. Whoever is listed as the owner of the policy will be able to cancel the policy and change the beneficiaries.
What type of life insurance should your parents have?
The right life insurance policy for your parents will depend on your family’s needs and what type of insurance your parents will be eligible for. Consider how your family will be financially impacted if the parent you’re buying a policy for dies. You’ll want to make sure that any costs that come up will be covered by the death benefit of the insurance policy.
The most affordable type of life insurance is a term life policy, but if your parent has serious health conditions, a final expense policy may be a better fit.
Term life insurance is the best choice if your parent's death would lead to a substantial financial loss, loss of household support (like childcare), or if you would have to take on their debts. The policy lasts for a set term. At the end of the term, you’ll have the option to convert the policy to a whole life policy.
Final expense insurance is a type of whole life insurance usually designed to cover end-of-life expenses, like funeral costs. It can be a good fit if your parents have medical conditions that might disqualify them from getting approved for a standard life insurance policy, like term life. Coverage amounts are low and premiums are high compared to term life policies, but the policies last for the rest of your parent’s life, and they don’t have medical requirements for approval.
Your parents should get enough life insurance to cover the cost of their funeral, medical bills, any debt they have, and any other expenses you would be left to pay when they pass away.
You also want to find a policy that has a monthly payment that you can afford. Working with a licensed agent is the best way to balance your family’s financial needs with your budget as the payor of your parent’s life insurance policy.
At Policygenius, our experts are licensed in all 50 states and can walk you through the entire life insurance buying process while offering transparent, unbiased advice.
Ready to shop for life insurance for your parents?
How much does life insurance for your parents cost?
If your father is 55 years old, doesn’t smoke, and only has one or two mild health conditions, you could get him a 20-year term life insurance policy with a $500,000 death benefit payout for less than $145 per month. If your mother is the same age, also doesn’t smoke, and is in similar good health, you could find her a policy for the same duration and with the same payout for less than $105 per month.
Buying life insurance for your parents will depend on a variety of factors, including their age and health status. If your parent is relatively healthy with only a few minor health conditions, they’ll be eligible for a term life insurance policy at a competitive rate. Term life policies typically offer coverage up to age 85.
Average cost of $500,000 term life insurance
Age
Sex
10-year-term
20-year-term
30-year-term
45
Female
$31.29
$45.73
$76.88
Male
$36.30
$58.39
$101.01
55
Female
$64.98
$104.28
$203.18
Male
$84.29
$144.74
$294.30
65
Female
$168.10
$352.99
N/A
Male
$242.86
$479.26
N/A
75
Female
$555.48
N/A
N/A
Male
$804.82
N/A
N/A
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Methodology: Average sample monthly estimated rates are for male and female non-smokers with a Preferred health rating buying a 10-year, 20-year, or 30-year, $500,000 term life insurance policy. Life insurance averages are based on a composite of policies offered by Policygenius from AIG, Banner Life, Brighthouse Financial, Foresters Financial, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica, and may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 02/01/2023.
If the parent you’re buying life insurance for has multiple health conditions, they may not be able to qualify for term life insurance. In that case, a final expense whole life policy may be a good fit for them. Final expense policies offer guaranteed approval and last for life as long as premiums are paid, regardless of health status.
If your mother is 65 years old, she could get a $25,000 final expense policy for less than $69 per month. If your father is the same age, he could get a similar policy for less than $170 per month.
Average cost of final expense life insurance
Age
Sex
$5,000 coverage amount
$15,000 coverage amount
$25,000 coverage amount
45
Female
$14.44
$41.33
$68.22
Male
$18.69
$54.08
$89.46
55
Female
$19.24
$55.73
$92.21
Male
$23.19
$67.57
$111.96
65
Female
$25.49
$74.47
$123.45
Male
$34.74
$102.21
$169.68
75
Female
$44.73
$132.20
$219.66
Male
$57.13
$169.38
$281.64
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Methodology: Monthly rates are calculated for male and female non-smokers obtaining a simplified issue, final expense whole life policy through Mutual of Omaha. Rates may vary by age and health class. Not all policies available in all states. Rate illustration valid as of 02/01/2023.
Best life insurance for your parents
The best life insurance for your parents will come down to a variety of factors, mostly based on their age and health profile. When you and your parent meet with a licensed sales agent, try to be as forthcoming as possible with them about your financial needs and your parent’s health. This way, they can help make sure you get the best possible coverage to meet your family’s needs.
Methodology: How we chose the best life insurance companies for people buying life insurance for their parents of 2023
We don't get paid for our company reviews and use an extensive rubric of criteria covering policy details, price, financial confidence, third-party ratings, and customer experience to assign unbiased ratings out of five stars. Any recommendations we make are based on internal and external expert opinions and data from our Policygenius Price Index, which uses real-time rate data from leading life insurance companies to determine pricing trends.
Our ratings and reviews can help point you to an insurer you can rely on for your family’s financial protection, but the best life insurance company for you is dependent on multiple factors. A licensed agent at Policygenius can work with you through the application process so you’re getting coverage from the best insurer for your circumstances at the most competitive price.
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.3
AM Best rating
A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
No-medical-exam option
Why we chose it
For people under age 55 and in relatively decent health, Foresters Financial's Your Term policy is a solid choice for a term life policy. You can get it without a medical exam and coverage can be offered within 24 hours.
Pros and cons
Pros
Accelerated death benefit rider includes coverage for critical, chronic, and terminal illnesses
Includes several no-cost riders that aren’t available through other insurers, including Family Health Benefit Rider and Charity Benefit Provision
No-medical-exam option available for people up to age 55
Cons
Not available in New York or Maine
People with complicated health histories will likely find their best rates elsewhere
Foresters offers competitive rates, especially for people under age 55. It also doesn’t require a medical exam to apply and offers living benefits — policy add-ons that allow you to access part of the policy’s death benefit while you’re alive due to serious illness — like accelerated death benefit and critical illness rider at no extra cost.
Best term life insurance for older parents
2023 Policygenius award winner
Lincoln Financial
Policygenius rating
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.8
AM Best rating
A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
No-medical-exam option
Why we chose it
Lincoln Financial offers a diverse array of life insurance policies, including competitive no-med and high-net-worth options.
Pros and cons
Pros
Affordable rates
Good for many existing health conditions, including depression, stroke, and heart conditions
Lincoln is one of the best options for people in the 60s and 70s because it offers competitive rates for these age groups. Lincoln’s also more accommodating of health issues like diabetes and heart conditions than other insurers, which tend to be more common for people this age.
Best final expense life insurance for parents
Mutual of Omaha
Policygenius rating
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.5
AM Best rating
A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A+
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
No-medical-exam option
Why we chose it
Mutual of Omaha is a reputable company that offers a variety of life insurance products — including a no-medical-exam option — so that you can select the type of life insurance that best suits your needs.
Mutual of Omaha consistently offers the most competitive rates for final expense policies. There’s no medical exam required to apply and you’re guaranteed approval.
Ready to shop for life insurance for your parents?
Getting life insurance for your parents is just like getting life insurance for yourself, except it requires an additional party’s involvement — your parent. Usually, the insured person is the owner, also called policyholder, and payor of their own policy, but if you and your parent agree, you can be the owner and/or payor of their life insurance policy.
Determine how much life insurance coverage your parent needs This should be enough to cover their funeral, medical bills, and any debt they have. You can also insure any income they’re expected to earn.
Find a policy that fits their needs If they need a large amount of coverage for a fixed period of time, a term policy will be better. If they need a small amount of coverage for the rest of their lives, a final expense policy will likely be a better fit. Depending on your parent’s needs, you may also want to consider getting a policy that offers a critical illness rider or accidental death benefit.
Decide who will own and pay for the policy If you’re getting a life insurance policy for a parent, they will be the insured person, you’ll be the payor, and either of you can be the owner. Just remember only the owner will have the ability to make changes to the policy, like canceling it or updating the beneficiaries.
Prove insurable interest The insurance company needs to verify that you’ll be negatively financially impacted if your parent dies. The insurer won’t let you get a policy for your parent unless insurable interest is established.
Answer health questions or arrange a medical exam Your parent will need to connect with an insurance agent to assess their medical profile and complete application questions. You may be present for this conversation.
Get their consent on the life insurance application Once your parent’s life insurance application is reviewed by the insurance company and they make a formal offer, if you wish to accept the insurance policy, both you and your parent will need to sign the documents to officially make the policy active.
Tips for discussing the benefits of getting life insurance with your parents
Depending on your family’s dynamics and needs, it can be difficult to encourage a parent to apply for life insurance. It’s important to make sure that both you and your parent are on the same page about their life insurance coverage, and how getting a policy will benefit your family.
Get your parent’s consent. You can't buy a policy without them — you'd be committing insurance fraud — since they need to answer application questions, participate in a medical exam, and sign off on the policy.
Let your parent know what to expect. They’ll need to apply with a licensed agent, take a medical exam, and sign the final policy documents.
Try to help your parent understand why it's worth it to you. Your parent may be hesitant about letting you pay for their life insurance policy. It may be helpful for them to understand costs associated with their passing, and how a policy can help you handle affairs when that time comes.
Can you get a life insurance policy on your parents?
You can buy life insurance on your parents if you can prove you'll be negatively financially impacted when they die and have their consent and cooperation throughout the process.
Can you buy life insurance for your parents without their consent?
You can’t take a life insurance policy out on anyone, including a parent, without their consent.
Can you pay for your parents' life insurance if you don't own the policy?
You can pay for a parent's policy even if you aren't the owner of their policy, but you’ll still need to prove that you have insurable interest.
What’s the best life insurance for your parents?
The best policy for your parents depends on their health and financial needs. Term life insurance is the most affordable option for most people, but final expense life insurance is easier to get if they have complex health issues.
Tory Crowley is an associate editor and a former licensed insurance agent at Policygenius. Previously, she worked directly with clients at Policygenius, advising nearly 3,000 of them on life insurance options. She has also worked at the Daily News and various nonprofit organizations.
Amanda Shih is a licensed life, disability, and health insurance expert and a former editor at Policygenius, where she covered life insurance and disability insurance. Her expertise has appeared in Slate, Lifehacker, Little Spoon, and J.D. Power.
Maria Filindras is a financial advisor, a licensed Life & Health insurance agent in California, and a member of the Financial Review Council at Policygenius.
