Can you take out life insurance on parents? Find out what you can do to get them covered right away and what is required here. First off, the answer is YES, you can buy a policy for your mom and dad with their consent.
Today we will be talking about purchasing insurance for somebody you love. I will describe to you how you can apply, what kind of carriers you should be aware of in your search, and which one specifically you should avoid. My name is Andrea Edwards, and I am a independent life insurance agent in Maryland, and I am here to help.
So the one thing I'm going to clarify here as we get started, this article is particularly designed for consumers who are concerned about getting a plan to pay for their parents' burial or cremation, or any kind of basic final expenses. This isn't necessarily designed for somebody who's looking for traditional life insurance. So the the thoughts and opinions in this video are specific to that particular type of person.
This isn't something that I would recommend to all people necessarily, but for the crowd out there, typically 50 and older, that just want enough coverage to handle all of the bills that come along with the passing of a parent. Like it or not, most seniors are typically on a fixed income, and they feel like they don't have enough to pay a monthly premium. This is this is where my opinions would be the most relevant.
So, look, I know you guys get all sorts of junk mail, certainly see TV ads multiple times a day. And if anything, there's confusion, right, you see all sorts of advertisements, and they certainly sound good when you're listening to them. But then again, it's questionable as to really what is the best for you. So the goal of this video is to kind of dispel some of the myths or concerns that you may see. And I really get down to what I would imagine what I would call the fine print of these burial insurance companies. So let's go and get started. So the first thing we have to recognize is that the act of dying, while guaranteed is on is never for sure as to when it's going to happen. So when you're unsure that when it's going to happen, but you know it will happen, then there's a definite case to be made for coverage. That is what we call permanent. It's not designed to cancel at a later date. It will be with you, no matter the circumstances. Why is this support. Most important because there's a lot of companies out there that you see every single day in the mail that offer a very competitively priced product. That is what's called term insurance. Now term insurance. Again, this description is not saying whether it's good or bad, but to let you arrive at your own conclusions based on how the particular plan works without trying to hide it in the fine print. The way term insurance works easiest way to describe it as it is temporary or terminating insurance, it is designed to cancel at a particular date in the future. So for example, there's a company that is marketed towards retired people, and starts with an A, you may know who I'm talking about. They don't also they also sell other things besides life insurance, car insurance, other products as well. And they position themselves as a, an advocate for seniors. The problem, however, is that the products that they endorse, they don't actually sell it, they're not an insurance company. But the products they endorse, are designed what I would imagine to be counterintuitive to the actual purpose of why one would even buy a burial insurance plan. So more specifically, getting down to brass tacks these plans are what's called term insurance. And the way these are specifically designed is that they cancel usually at 80 years old, and they have five year incremental increases as you age. So imagine yourself buying something being on a fixed income, you're not made of money, you're retired, after all, you are fixed, as they say, you know what that means. If you are and you have a price increase, you bought it at 65. Now you're 70 and your price doubles. Imagine yourself trying to pay that along with your other bills, because it's not just this particular insurance, it's going to go to other products that you buy. And own too, right? I mean, your electricity bill goes up your car payments may go up if you buy a new car or something like that. So there's always these people grabbing at your check every month. And the last thing you need is one more service that will try to do the same thing. Now to add insult to injury, you make it to 80 you may not be in perfect shape, you may be in perfect shape. But no matter the problem, no matter the circumstance and at they outright cancel you. So you literally after all these years of paying beautifully, religiously, diligently every month, you have nothing and you probably most needed. And now that you're going to go back out in the market to buy a new insurance plan. Well, now you're stuck paying an exorbitant amount of money, much more than if you have taken out a permanent insurance plan earlier on in your life. So again, the reason this is important is because the bottom line here is that you want to buy a burial insurance product that matches the actual need of what it is that you're wanting. Okay, you don't want to go into an insurance where you may outlive it and basically send a lot of cash to your insurance company and have nothing to show for it. I have endless stories of people where this has happened. I have one lady who in her late 50s took out a term insurance plan. She's paying 60 bucks a month. It was a reason before she worked. I met her at 83 years old, she was referred to me. And she just had open heart surgery. And she had one of these other plans were at 70. She had incremental annual increases this one cancelled at 90, but they just stacked the increases on later in life. And at 83 for what she had in coverage. Instead of paying 60 bucks a month. She's paying 300 a month, no joke. Now, this wasn't a problem up to this point because the lady was working in the dry cleaner like 2030 hours a week like at three. When she had this open heart surgery, her life changed dramatically. And now she didn't have disposable income to pay for it. So she had to let the policy go. She was in a position where she didn't have coverage. And now what she's going to go out and try to get the right kind of insurance, the permanent covers, it doesn't do this garbage to you. Now she's going to be almost completely