Co-Founder, Coastal Financial Partners Group, California
It isn't clear if you mean paying premiums for a new policy for your parent where the parent will own and be the insured of the policy or if you mean to take out life insurance on your parent's life but be the premium payor, owner and beneficiary.
In the former, if he/she is insurable, he/she can have a policy on his/her life and you can pay premiums which would be gifts to him/her. This can be done. In the latter, it is permitted under the rules of insurable interest as long as the parent is insurable and consents to the insurance.
If you mean can you pay for life insurance out of your pocket, yes you can do that. If you mean pay for life insurance where you are the beneficiary and /or owner, then you’ll have to justify the economic loss or third party ownership. With reasonable amount of death benefit, this shouldn't present a problem. Keep in mind that some life insurance companies will require you to have life insurance on yourself before your parents.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Can you buy life insurance on a parent? Yes, you can. You can be both the owner and beneficiary of a policy on a parent. The parent has to agree to coverage. The amount has to be within the insurance company's underwriting guidelines. This type of arrangement can be used for things like final expenses up to estate planning.
YES of course.
In fact many "children" are purchasing Life Insurance to prevent a financial strain on the family. Also consider, with the Critical Illness & Chronic Illness features on policies these days, it is not a bad idea to get a policy which will help fund in the event of a heart attach, stroke, cancer & Chronic Illness which you can think of in simple terms as Long-Term care needs (note: these generally speaking are not Long-Term Care Insurance but is available).
Remember there does have to be an insurable interest in place. Depending on the company, you may have to have insurance on yourself. Your parents have to be involved in the process as well. You CANNOT just take a policy out without them knowing.
Regional Marketing Director, Capital Choice Financial Group,
Sure, but be sure the need is there. If the parent has and income, cash, and adequate assets there might not be a need for life insurance. But, if the need is there then first know what your parent's medical history is and begin to shop for a policy to get the best rate. If health is bad then you may need to go to a guaranteed issue policy.
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In the former, if he/she is insurable, he/she can have a policy on his/her life and you can pay premiums which would be gifts to him/her. This can be done. In the latter, it is permitted under the rules of insurable interest as long as the parent is insurable and consents to the insurance.
In fact many "children" are purchasing Life Insurance to prevent a financial strain on the family. Also consider, with the Critical Illness & Chronic Illness features on policies these days, it is not a bad idea to get a policy which will help fund in the event of a heart attach, stroke, cancer & Chronic Illness which you can think of in simple terms as Long-Term care needs (note: these generally speaking are not Long-Term Care Insurance but is available).
Remember there does have to be an insurable interest in place. Depending on the company, you may have to have insurance on yourself. Your parents have to be involved in the process as well. You CANNOT just take a policy out without them knowing.