When it comes to the safe and secure financial future of our loved ones, everyone thinks about getting life insurance plans. Well! It could be a safe option as your insurance policy provides death benefits when the insured dies.
Life insurance policies come with a lot of options to choose from. There are so many options that might make you confused about which one is best for your needs. And when you have to buy insurance for your grandparents, it’s a matter of more concern. You have to choose wisely which life insurance policy would stand out best for them. Here we will explore and help you to select the right policy. We will also discuss the process and requirements of the procedure.
Is it possible to get a life insurance policy for your grandparents?
Most of us purchase insurance policies for ourselves. However, if you are wondering whether you can buy an insurance plan for your grandparents, you are not alone. Well! You can certainly buy an insurance policy for your grandparents but there are some rules when you have to buy coverage for another person.
For buying a policy for your grandparents, you will require their consent along with your insurable interest. Most insurance companies demand age and health status before issuing the policy. If your grandparents are older or have some pre-existing medical conditions, limited policy options will be left for them. That’s why it is recommended to get an insurance policy at a young age.
How to buy a life insurance policy for your grandparents?
For getting an insurance policy for your grandparents all you need from them is their willingness to answer the health questions and sign the application. If they do not agree to participate, there is no other way to insure them.
Moreover, insurance companies demand beneficiaries have an insurable interest in buying life insurance for their grandparents. It is the assurance that you would suffer a financial loss due to the insured’s death. Your most common insurable interest is to cover your grandparents ‘ funeral costs, medical bills, and any other end-of-life expenses.
What are the types of insurance that you can buy for your grandparents?
Several kinds of coverage options are available from various insurance companies in the USA. However, some common types of life insurance policies you can buy for your grandparents include:
1- Term Life Insurance
It is one of the most affordable options available but it offers coverage for a certain period. If the insured person passes away while term life insurance is in effect, the death benefit pays out. This policy generally required the covered person to provide a detailed health history and undergo a medical exam. If your grandparents have some pre-existing condition, they may not qualify for it.
2- Whole Life Insurance
It is permanent coverage that comes with an investment option. Whole life insurance certainly remains in effect but it is too costly. Most people do not buy it for their grandparents because of its high cost. Same as term insurance, this policy also demands a medical exam along with a health history and would not issue a policy if the insured is too old or very sick.
3- Guaranteed Issue Life Insurance
If your grandparents have some medical concerns, guaranteed life insurance could be the best option for you. It does not need an exam or health history of the insured. However, your grandparents still have to agree about coverage. This policy typically comes with lower death benefit limits and there is a waiting period too before the full death benefit pays out. Keep those facts in mind while going for this policy.
4- Burial or Final Expense Insurance
It is another option to buy an insurance policy for your grandparents that is intended to pay funeral expenses and some other costs to cover after-death expenses. Final expense insurance is generally guaranteed to be issued, but coverage limits are low along with some waiting periods.
Things to Consider While Getting an Insurance Policy for Grandparents
Here are a few things you must consider while choosing an insurance policy for your grandparents.
- Need of the beneficiaries: Insurance policies for grandparents are used to cover the final expenses like funeral costs, debts, medical costs, and living costs.
- Age and health of grandparents: Remember that insurance premiums are lower for younger and healthier people as compared to old ones.
- Type of policy: A term life insurance policy could be more suitable for temporary coverage as compared to whole life insurance.
Frequently Asked Questions
Can you get an insurance policy for your grandparents without their consent?
No, it is not possible to buy life insurance for any person without knowing them. You must have consent to buy life insurance for them because insured people have to provide medical information and undergo an exam too.
How to get life insurance for your relative?
To get life insurance for your relative, you must have the permission of the person you want to insure. Additionally, you must have an insurable interest in the life of the insured person. It means you must know the person and stand to face any financial or other losses if they happen.
Is it possible to buy insurance for someone who is dying?
No, you can’t buy life insurance for someone who is dying because the insured will ask about medical history and also require an exam before giving coverage. If they find a terminal illness, they will deny your application as the chances of a claim payout are too high.