As parents age, adult children often find themselves helping with important financial decisions. One topic that’s easy to put off, but can have a significant impact on a family’s finances, is life insurance.
Maybe your parents let a policy lapse years ago. Maybe they never purchased coverage. Or perhaps rising costs have made it difficult to keep up with premiums. Whatever the situation, life insurance may help protect against expenses that could otherwise fall on loved ones.
If you’re considering purchasing life insurance for a parent, use this checklist to help guide the process.
Related: Navigating Financial Caregiving and the Sandwich Generation: 7 Smart Strategies for 2026
✅ Step 1: Determine Why Coverage Is Needed
Before shopping for a policy, identify the financial risks you want coverage to address.
Consider whether the policy may help cover:
- Funeral and burial expenses
- Outstanding medical bills
- Credit card balances or other debts
- Mortgage payments
- Final tax obligations
- Financial support for a surviving spouse
- Other end-of-life expenses
Why it matters: The amount of coverage needed can vary dramatically depending on your parents’ financial situation. A policy intended to cover funeral costs may require much less coverage than one designed to help pay off a mortgage or provide ongoing financial support.
✅ Step 2: Have the Money Conversation
Buying life insurance for a parent starts with an honest discussion.
Topics to review include:
- Existing life insurance coverage
- Retirement income sources
- Savings and investments
- Outstanding debts
- Monthly expenses
- Future care needs
Why it matters: Many families discover coverage gaps only after a loved one passes away. Talking through finances now can help prevent surprises later.
✅ Step 3: Understand Consent Requirements
You can’t secretly purchase life insurance on a parent.
To purchase coverage:
- Your parent must generally participate in the application process.
- They must consent to the policy.
- They may need to provide health information.
- Depending on the policy, a medical exam may be required.
Why it matters: The application process is often easier when coverage is purchased earlier, before age or health concerns limit available options.
✅ Step 4: Confirm Insurable Interest
Insurance companies will require proof that you would be financially affected by your parent’s death.
Typically, immediate family members automatically have an insurable interest, including:
- Adult children
- Spouses
- Parents
Why it matters: This requirement helps ensure life insurance is purchased for legitimate financial protection purposes.
✅ Step 5: Decide Who Will Pay the Premiums
Many retirees live on fixed incomes, making life insurance premiums harder to manage.
Ask:
- Will your parent pay for coverage?
- Will you cover the premiums?
- Will multiple family members contribute?
Why it matters: The cost of coverage doesn’t change based on who pays the premiums. In many cases, adult children choose to help pay for a policy because it fits more comfortably within their budget.
✅ Step 6: Decide Who Should Own the Policy
The policy owner controls important decisions, including:
- Changing beneficiaries
- Updating coverage
- Transferring ownership
- Adding or removing riders
The owner is often the person paying the premiums, but that’s not always the best choice.
Why it matters: Discussing ownership with parents and siblings upfront may help avoid misunderstandings later.
✅ Compare Your Policy Options
Not every life insurance policy serves the same purpose.
Term Life Insurance
Best for:
- Temporary financial obligations
- Mortgage protection
- Debt repayment
Considerations:
- Coverage lasts for a specific period
- No death benefit if the insured outlives the term
- Coverage options may be limited at advanced ages
Whole Life Insurance
Best for:
- Lifelong coverage
- Long-term financial protection
- Permanent insurance needs
Considerations:
- Premiums are generally higher than term life insurance
- Coverage remains in force as long as premiums are paid
- Riders may provide additional benefits
Related: What’s the Difference Between Term and Whole Life Insurance?
Final Expense Insurance
Best for:
- Funeral and burial costs
- Smaller coverage needs
Considerations:
- Lower death benefit amounts
- Typically easier to qualify for
- Often requires fewer medical requirements than traditional policies
Guaranteed Acceptance Life Insurance
Best for:
- Individuals with significant health concerns
- Those who may not qualify for other coverage
Considerations:
- Acceptance is guaranteed
- Premiums are usually higher
- Policies often include a limited benefit period
✅ Calculate How Much Coverage May Be Needed
When purchasing coverage for a parent, focus on financial needs rather than simply buying the largest policy available.
Review:
☐ Funeral and burial costs
☐ Outstanding debts
☐ Medical expenses
☐ Mortgage balance
☐ Income needs of a surviving spouse
☐ Affordability of premiums
☐ Existing savings and assets
Why it matters: The right amount of coverage can help protect loved ones from unexpected financial burdens without paying for more insurance than the situation requires.
Final Checklist
Before purchasing life insurance for a parent, make sure you’ve checked these boxes:
☐ Identified the financial need
☐ Discussed finances with your parent
☐ Confirmed their consent
☐ Reviewed available policy options
☐ Determined who will pay premiums
☐ Chosen a policy owner
☐ Calculated an appropriate coverage amount
☐ Compared policy costs and benefits
The most important step is often the first conversation. By discussing life insurance needs before a crisis occurs, families may have more options and more time to find coverage that fits their goals and budget.
Want more? Check out our blog, 7 Ways to Help an Aging Parent Navigate Medicare Enrollment
We’re Here for You!
Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.
