Life Insurance for Parents

It used to be that your parents worried about your finances as you grew up. But now that you’re an adult and your parents are older and perhaps retired, the roles may be reversed: it’s your turn to fret over their financial wellbeing. Especially if they rely on a fixed income, you’ll want to make sure they protect each other and their family with life insurance.

Can I Get Life Insurance for My Parents?

Yes, you can get life insurance for your parents — as long as you have their consent and a valid insurable interest, meaning their passing would have a financial impact on you.

If your parents agree to the coverage and sign the application, you can purchase the policy and even take responsibility for paying the premiums.

Gerber Life offers several life insurance options for seniors, depending on their age.

Should I Buy Life Insurance for My Parents?

Determining whether to purchase life insurance for your parents can be a challenging and emotional decision. It’s common to feel unsure about this choice, as it involves both financial implications and the well-being of your family. However, there are several compelling reasons to think about getting life insurance for your parents:

• Final Expenses: Life insurance can ease the financial strain of funeral and burial costs, providing comfort during challenging times.
• Inheritance of Property: Inheriting your parents’ home may come with mortgage payments and upkeep costs, making life insurance a prudent financial move.
• Co-signed Financial Obligations: If you’ve co-signed loans with your parents, their passing could transfer financial responsibilities to you, which life insurance can help mitigate.
• Support for the Surviving Parent: Life insurance can deliver crucial financial support for the surviving parent in the event of one’s death.

These are all examples of insurable interest — where your financial well-being is tied to theirs. Purchasing a life insurance policy for your parents could be a way to protect both your future and theirs.

How to Get Life Insurance for a Parent

If you’ve decided to get life insurance for one or both of your parents, here’s how to start:

1. Seek Consent 
   Begin by discussing the life insurance purchase with your parents to ensure they are informed and in agreement with the plan. 

2. Evaluate Coverage Needs
   Assess the appropriate coverage amount based on anticipated expenses, debts and other financial responsibilities. You can use our life insurance calculator to estimate a coverage amount.

3. Select a Life Insurance Policy
   Investigate different policies to find one that aligns with your parents' specific needs. Gerber Life offers several options, from term life to guaranteed acceptance coverage.

4. Complete the Application
   Work with your parents to fill out the application forms. Either or both parents can apply, and in some cases, you may also need to sign. Applicants over age 55 may need to complete a simple in-home medical exam.  

5. Get Approved and Start Paying Premiums 
   Once approved, initiate premium payments to keep the policy active and secure your family’s financial future.

Life Insurance Policies for Parents

Depending on their age and health, your parents may qualify for one of these Gerber Life Insurance policies:

Term Life Insurance

The Gerber Life Insurance Family Plan Term Life Insurance offers coverage from $100,000 to $2,000,000 for applicants up to age 70. Depending on their age, policy durations are available in 10-, 20- or 30-year terms. Additionally, premiums are locked in and will not increase.

Older applicants may want to consider whole life insurance instead, which provides coverage that doesn’t expire (assuming as premiums are paid).

Whole Life Insurance

Whole life insurance may be a better choice for older adults since coverage continues indefinitely, unlike term life insurance. Although whole life plans are typically pricier than term options, these policies also accumulate cash value over time. Your parents can borrow against this cash value if they need immediate funds or opt to cash in the policy. The longer they hold the whole life insurance policy, the more cash value it builds.

Coverage amounts for Gerber Life’s Family Plan Whole life policy range from $50,000 to $1,000,000 up to age 55, and up to $500,000 for ages 56–80. Premiums are guaranteed not to increase, and approval depends on responses to health questions.

For both Family Plan Term and Whole life, applicants over age 55 will require a medical exam. This is generally a simple in-home visit with a licensed medical professional. Either or both parents can apply.

Guaranteed Life Insurance

If your parents are 50+ years old, they may qualify for a Gerber Life Guaranteed Life Insurance policy*. This whole life policy provides $5,000 to $25,000 in coverage (maximum $15,000 in South Dakota). No medical examination is required, and no health questions will be asked, ensuring acceptance* regardless of health condition.

This policy also builds cash value over time, which can be accessed through policy loans**. It’s a simple way for your parents to plan ahead for funeral costs or final expenses and give loved ones one less thing to worry about.

If you have any inquiries or are ready to explore adult insurance options for your family, contact us toll-free at 1-800-503-4480. Our life insurance specialists are here to help.

*To be eligible for coverage, the applicant must be a U.S. citizen between 50 and 80 years old (New York maximum age is 75) residing in the U.S. or a permanent legal resident. The total limit of all combined Gerber Life Guaranteed Life policies is $25,000. Gerber Life Insurance Company will not issue insurance for any proposed insured if a Power of Attorney or Guardianship exists, except in the case of legal guardians of children.

** Policy loan interest rate is up to 8%. Loans may impact both the cash value and the death benefit of the policy.