When buying a life insurance, it is not a must you buy the policy on your life only. In some cases, purchasing a life insurance for your parents is helpful. You can get life insurance for your parents in case they cannot afford it because they need to have it.
Before getting your parents a life insurance, it is important you ascertain the insurance company that you would be directly affected financially in case your parents die. Below is a guide on how to get life insurances for your parents.
Determine how much life insurance you must get
In case your parents have several debts or financial obligations such as funeral expenses that you will be accountable for after they die, it is important to add them up and include them in the insurance. When you calculate all these financial obligations, they should sum up to the total amount of insurance you should purchase.
Get quotes from various life insurance companies
Life insurance is supposed to cover your parents’ lives for their whole life but not part of their life. Thus, it is important to get life insurance for your parents because you cannot predict their death. Selecting a policy that will allow you to renew the life insurance the better because when the term has expired, it will be easy for you to renew the policy if need be.
Fill out application forms
For you to get life insurance for your parents, you must have their permission. They will be required to sign their names to the application form. It is necessary to have the policy set in a way it will renew itself automatically.
All that is required is for your parents to undertake a medical examination, fill out a lifestyle questionnaire, and endure the amount of premium. Usually, the insured person, in this case, your parents, are the people being insured under the policy whereas you are the policyholder.
Submit the application to the insurer
You are supposed to pay the first premium. However, you must ask to be certain whether the premiums for the life insurance policy are fixed or whether they will be adjusted during the term. When you are certain of the terms of payment, you can pay as this gives the insurer a go ahead on issuing a temporary insurance binder which will provide a temporary insurance coverage until the time the policy is issued.
Organize with the insurance company to schedule health assessment for your parents
The insurance company is required to have a normal underwriting on your parents; therefore the insurer will need to carry out a health assessment to your parents. The insurance company usually contracts with a third party professional who is usually a traveling nurse who visits clients in their residents. The nurse will collect urine and blood samples and examine them. When the process is complete, and the application has been approved, you will be sent the policy contract via email.