The Best Life Insurance for Parents in 2023

Life insurance offers valuable protection. A life insurance policy is a valuable protection option for young children. You may also wish to purchase life insurance to protect your elderly parents. We recommend checking out the best insurance for those over-50s, the best insurance for seniors, and the best funeral insurance companies.

Most Frequently Asked Questions

What does life insurance do for parents?

Two types of parents’ life insurance are available: permanent life insurance and term insurance. Term life insurance covers you for a specific period (called the term). It is usually between 10 and 30 years. Your beneficiary will receive the death benefit if you die during the term. Permanent life insurance (such as whole life) provides lifetime protection. The insurance company will pay out when you die.

Permanent life insurance policies also accumulate cash values which is a benefit that term policies do not have. As the policyholder, the cash value increases with every premium payment. You can also withdraw the money or borrow it. As you get older, the cash value helps to keep your life insurance costs low.

Is it possible to purchase life insurance for my parents?

Yes. Yes. The policy owner and the insured person can be different people. However, you will need to get your parent’s permission. If required, they will have to sign the application and go through a medical exam. They may also need to prove that they have an insurable right to you. This is when you are financially or emotionally affected by their death. This is often the case for parents.

How much does life insurance for parents cost?

The cost of life insurance is dependent on many factors such as tobacco use, health, occupation, type of policy, and death benefit. The cost of life insurance is less expensive if you’re younger and more healthy. Term life insurance policies are also cheaper than permanent policies. Permanent policies like universal and whole life insurance have a cash value and can last longer.

We can see term life premiums from Protective to show how life insurance premiums rise with age. The average rate data for term life insurance shows that it costs $16.06 per month for a 25-year-old. Protective’s average monthly premium for a 55-year-old is $107.12, but it is significantly higher.

Methodology

To compile our list of best life insurance companies we created a comprehensive life insurance methodology. To find out what life insurance consumers want, we started by looking at third-party consumer studies like J.D. Power’s 2021 U.S. Life Insurance New Business Study. The 2021 Insurance Barometer Study.

We analyzed more than 50 data points about 91 life insurance companies to find out how they rate financial strength, customer satisfaction, and complaints. Also, information about the years in business, cost and online tools, policy types and features, as well as details such as no-exam options and policy types.

We favored companies that had high financial stability, low customer complaints, and a strong product and resource portfolio. We valued online quoting, application tools, transparent pricing, no-exam policy options, and online quoting. Ratings were boosted if customers could access customer service via live chat.

By comparing individual offerings among companies, we delved deeper into product details, such as maximum coverage amounts, maximum issue age, included riders, and product-specific application procedures. This research was used to identify the best companies for various products and consumer groups.

Updated: December 25, 2022 — 9:18 am

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