Let’s be realistic. Our folks are getting older. For some, like this writer, his Dad has already passed away. Yes, the funeral costs were higher than we expected. So it made me wonder, would it have been possible to buy life insurance for my parents?
Why didn’t my parents have life insurance coverage?
After all, I am his son and of course I am in this business and have been for years. The reality is, he never wanted it. I must have mentioned it to him 25 times and he just waived me off. For some reason, men can sometimes take on the attitude that insurance really isn’t necessary.
Wrong … Even though most of his friends had passed on (my Dad was 87), the cost of the funeral was $23,000. For the top 1%, that might not even be an issue, but after all, everyone in my family is successful, but still working to reach goals.
Bill Gates? … we don’t have someone with that wealth in the family.
So why not just buy life insurance coverage for both of my parents before my Dad passed without even asking him?
The simple answer is, that you CAN NOT take out coverage on a parent without them knowing about it and agreeing to it. They have to be in favor of the idea.
You can pay for life insurance, but your parents have to agree to it.
This is a traditional part of the entire insurance industry and the idea while a bit morbid is that the carriers don’t want an estranged son or daughter buying a policy on a parent and then somehow hastening their death. It some parts of the country you could almost envision that happening, but in my own case, my Dad was my whole world to me.
But convincing my Dad to allow us to help him purchase life insurance was a challenge (he just didn’t want to hear about it), so there was no coverage and the burden fell on all of us.
At the end of the day, we had a $23,000 Burial Expense that had to be paid. Somehow, we all got it done without creating a family battle.
And the family battle is one of the feature reasons, folks should consider Final Expense Insurance coverage. Sometimes a parent has multiple children. Some could afford their portion of the final expenses that will occur, but then again, some can’t. This can cause serious tension.
And small tensions can lead to major battles if someone says something in between mourning the death and frustration of the costs.
One of the worst things that seems too prevalent in the United States is families squabbling over parents after they pass. Their finances and their final wishes. We need to do a better job as a country making sure these things are taken care of (as much as they can be), while we are still living. Is it really worth a family in chaos just because of the natural passing of an elder family member? This is why insurance coverage is so crucial, to ease the tensions as much as possible.
This is why I am Dedicated to Final Expense Coverage.
Some think Life Insurance policies are get rich quick mechanisms. After all, if you are younger and take out a hefty policy and someone passes, the payoffs can be large. Anywhere from $100,000 to cases like mine for my family, millions of dollars. But the fact is FEW of these end up paying, as 94% of term coverage ends WITHOUT payment.
People simply outlive the coverage lifespan. For example a 30 year term that you might take out when you are 37 years old, expires when you are 67. You might think you will die young, but the average age of folks dying these days is in the mid 70’s. All those years of payments and your loved ones get nothing because the policy ends with you still alive. Which is good, for you living, but bad for the overall value in the policy.
Strange how these things work.
Final Expense policies are different. We believe they are statistically superior. The dollar amount is much smaller, but with the policies we offer, as long as payments are made, 100% of them will payoff in the end because we are all going to pass away eventually.
So in short, younger folks can take out policies with larger Benefit amounts, but few actually collect. While folks between the ages of 50-89 will get policies for Final Expense with smaller amounts, but that will actually be paid to your beneficiary.
So What Type of Life Insurance Policy Should You Buy for Your Parents?
Pick the life insurance plan that best fills your family needs
Some folks want to be cremated. The cost is typically in the $4,000-$7,000 range by the time everything is taken into consideration.
Others want a burial. The cost of that can be in the $8,000-$10,000 range and higher. Remember, the funeral expenses for my Dad were over $20,000, but those were in the state of Maine, which typically is a very expensive place to do virtually anything.
Some folks want more coverage than just for burial expenses. Maybe they will need to pay off a debt or need extra money for the short term to liquidate their parent’s property.
These things should all be considered.
You will want to work with an Independent Life Insurance Agent that has MULTIPLE carriers
Here is the problem with companies like State Farms. Usually they just offer State Farms. If State Farms has high prices in a certain state (they are actually very high in all 50 states), that’s your only option.
With an agent here at Insuranceforfinalexpense.com, we are not tied down to one single carrier. We can save you as much as HALF while actually getting you better coverage.
Why pay more and get less? You would be surprised how many people do exactly that.
Another question we are asked, is do you have to be physically with your parents to do a policy for them. Remember, they need to agree to this. In my case, I live in Arizona and my Dad lived back east. I would only visit a few times per year.
But the Life Insurance Policy CAN be Done if You are not Physically Together with Your Parents.
You have two easy choices. The policy can be signed by both you and a parent by either voice signature or email signature. Either only takes minutes.
Again, the insurance carriers like Mutual of Omaha simply want to know that everyone is on board with the idea and know that you has one of your parents children, will be paying for the coverage.
Warning: Be very careful of coverage being offered on TV by carriers like Colonial Penn who utilize Alex Trebek as their celebrity spokesperson. While Colonial is an excellent carrier with good coverage, their policies can be pricey and have that dreaded two year waiting period for full coverage.
Now you might think pricey means a few dollars greater than what an independent agent like Insuranceforfinalexpense.com offers, but in fact, our prices can be HALF of theirs. And yes, it’s the same or BETTER coverage. Why pay more?
That’s a lot of money for those who want coverage, but don’t want it to be out of their price range.
And remember, Colonial Penn was founded in 1968. Again a quality carrier, but Mutual of Omaha one of the most popular carriers in the country who we work with frequently were founded over 100 years ago and survived the Great Depression unscathed.
So, Who Would You Rather Have Your Parents Coverage From?
When you consider the fact that Insurance for Final Expense can be half the price of Colonial Penn, it is simply an overwhelming value too good to pass up.
So fill out the quote form on the right and find out just how inexpensive quality Life Insurance really can be vs. high priced TV pitch people selling you coverage . We all love Alex Trebek, but he’s not working for free. His costs as well as the purchase of all of that Colonial Penn TV time, get passed on to you.
Gary P. Cubeta
(Serving Americans In All 50 States)