Sometimes, purchasing life insurance isn’t always as simple as looking for our own policies and coverage. In some circumstances, we need to complete some financial planning for other family members to relieve anxiety and burden at the thought or sudden tragedy.
Often this is because of parents or even siblings never purchasing their own life insurance and potentially leave us on the hook to cover funeral expenses and other final debts that can occur at death.
In these situations, we are looking for answers to specific questions. One of those questions may be as simple as can I get life insurance on my mom? After years in the life insurance industry, here is what I can tell you.
So, can I get life insurance on my mom? Yes, you can get life insurance on your mom. Purchasing life insurance on other individuals or family remembers will require consent from all parties and insurable interest to be present. In addition, you will be required to be the premium payor for the life insurance coverage.
I’ll explain the insurable interest in more depth and give you a full easy to understand breakdown of how purchasing life insurance on other family members including your mom will look and what steps will be involved in the process.
However, we always recommend that if you are trying to save time that you should stick to comparing rates and quotes with all life insurance companies.
You can do this easily below using our instant life insurance quotes rate engine to compare rates with 50 of the top rated life insurance companies.
You can do this easily by using our rate engine directly below.
Let’s dive into the specifics.
If you haven’t seen the post we have on life insurance basic terminology yet, be sure to stop by that post here for more information before beginning.
Getting Life Insurance for Your Mom or Other Family
First and foremost, it’s essential for you to understand that purchasing life insurance on your mom or other family members is extremely common. We see it each day almost. Kids, spouses and other family members often purchase life insurance on other members of the family.
It’s easy to understand why. Often, our family’s member fails to plan financially for the potential issues that can arise after death. Final debts, funeral arrangements and even getting the family together for the service are the cost that need to be considered and items that are often neglected by family members.
It’s extremely common. The goal is to avoid the financial burdens these costs will bring in the future and sadly, in most circumstances this will require another family member taking on the life insurance bill to get things planned and taken care of.
This isn’t necessarily a bad thing. In fact, it can be a good thing. Regardless of the specifics of the situation, purchasing life insurance on these family members is still a much better approach compared to not having plans or financial means ready in the case tragedy does come sooner than expected.
Options to Consider Shopping Life Insurance for Family
When your shopping for life insurance for your mom or another family member, you have a few things to keep in mind. First and foremost, you want to find affordable life insurance. Especially when you are going to be the premium payor for another family member.
This may mean that you work an Independent Agency such as Good Life Protection or another agency. You want to make sure that you are being provided all the options and comparing rates with all the top life insurance companies that we all know and trust.
Companies such as the following are usually a great starting point.
- Protective Life Insurance Company
- Prudential Life Insurance Company
- Phoenix Life Insurance Company
- Mutual of Omaha Life Insurance Company
- American General Life Insurance Company (AIG)
When you provide yourself as many options as possible, you can feel good knowing that you are searching for the lowest possible price available.
Coverage Amounts Considerations
It’s also imperative that you determine and go over your needs and find an amount of life insurance that’s enough to keep you financially protected and secure. Let’s assume you are only considering purchasing enough coverage to cover final expenses such as the burial, visitation, and final arrangements.
You need to factor in and consider cost such as the following.
- Does Any Family Need to Travel to Said Arrangements?
- How Expensive of a Funeral Does Your Mom, or Family Member Wish to Have?
- Do They Want a Full Burial or Possibly Cremation?
- List Item #1
All the items listed above are important considerations and can alter the amount of coverage you ultimately need significantly. These types of needs are going to require you to look in the range of roughly 12,000-25,000 in total coverage.
A final expense burial plan that covers these expenses could be the best fit. Companies discussed previously such as Phoenix Life Insurance Company, and Mutual of Omaha can be great options if this is the only coverage you need.
However, keep in mind that if you are shopping for life insurance for your mom and looking at these policies options, you will be limited by the fact that these final expense plans are usually only offered to individuals who are between the ages of 50-85 years old.
Coverage amounts are often usually limited as well in amounts ranging from 2,000-40,000 of total life insurance coverage that you can place in force for your mom or another family member.
Other Coverage Amounts Considerations for Your Parents or Other Family
Burial plans that your mom or other family’s members wish to have are rarely the only expenses that you need to consider when purchasing life insurance.
You also have items such as final debts including to the following possible obligations that remain in your mom or other family members names.
- Credit Card Debt
- Home Mortgage
- Medical Expenses
- Other Misc. Debts
This is when you need to sit down with your mom or other family members and convince them to divulge the actual financial situation that they are in. If you don’t know what to expect, how are you supposed to know how much life insurance you need to purchase?
If your mom or family has other debts that will need to be paid at death, they need to be paid by someone.
You don’t want that burden ultimately landing in your hands. Add up the remaining debts that your parents or other families may have and put this number in addition to the burial cost. Now, you are getting close to purchasing the correct amount of life insurance.
Gifting and Legacy Leaving and How Life Insurance Can Help
It’s never a good thought to consider profiting off the death of a loved one. However, you need to consider this from another angle. If you have kids (mom’s grandkids) or perhaps your mother wants to leave a legacy for you to help with costs such as purchasing a home or providing a security blanket for you and the family.
If this is the case, you would want to add this to your total amount of life insurance you wish to purchase.
This is Allowed but Keep Insurable Interest in Mind
Technically, having the access to this amount of life insurance is perfectly allowed, legal and it’s done frequently. We see it all the time at Good Life Protection. However, insurable interest will come into play in some situations.
If the life insurance company believes that you are attempting to purchase too much life insurance for no real good reason, they may reduce the total amount of life insurance that you are qualified to purchase.
They do this typically based on the agent’s report on factors that we have already discussed. Let’s say I work on your life insurance policy for you and your mom’s total needs equal 75,000 in coverage.
- 25,000 for Burial and Final Expense Needs
- 50,000 for Other Debts to Be Removed for Your Mom
- 75,000 In Total Coverage Needed
Applying for a coverage amount such as 500,000 may not be justified in this situation and may cause problems to occur during the application process. If, however, you are applying for 150,000 and the other 75,000 is legacy of gifting to you or a grandkid, this is perfectly fine.
In fact, we advise it if the premiums are affordable.
Don’t Forget About the Medical Questions During the Application Process
You also need to keep in mind that even though you are purchasing life insurance for your mom or another family member, the life insurance company will still want to inquire about the individual’s health that is applying for the coverage or the individual person who is being “insured.”
Depending on the kind of life insurance you are choosing to purchase, the questions and a medical portion to the application process may vary. You may have a full medical exam needed which is known as a fully-underwritten policy (cheapest policy options).
If this is the case, you can still be the owner of the life insurance policy, and the medical exam itself will always be free and provided by the life insurance company on the behalf of your family members.
However, you need to contact your life insurance agent and your mom or other family members in this situation making sure that everyone is on the same page.
What do I mean by this?
Well, I merely mean that you need to get the exam scheduled and completed and be kept in the loop during the process about next steps. In most situations, your agent will help you in the loop along the way and answer any questions that you may have.
What If My Mom or Other Family Member Won’t Complete the Exam?
Some parents can be very stubborn. Trust me, I get it. Sometimes we have a parent or other family member that just completely refuses to complete the medical exam either out of fear or due to something else.
If this is the case, don’t worry. You still have other options that you can consider, and we are going to touch on those options next.
No Medical Exam Life Insurance for Your Mom or Other Family Member
If you have a parent that refuses to complete the medical exam, they may be willing to meet you and the life insurance agent halfway and at least answer the medical questions over the phone. If this is the case, you still have the option to purchase no exam life insurance.
Going through this process instead of the fully-underwritten life insurance policy option will eliminate the medical exam, but you will still need to get your mom or other family members to agree to answer roughly 20-30 minutes’ worth of medical questions.
The application itself will have questions such as the following.
- Do you Smoke?
- Any history of cancer, diabetes, heart problems or stroke?
- Primary Dr’s Information (In case Dr’s APS Form is Needed)
- Roughly 15-20 other Medical Questions
No Exam Policies Are Much Faster and Easier to Complete
Purchasing a no-exam life insurance policy on a family member is by far the easiest and fastest way to get life insurance coverage in place and taken care of. Usually, the price is slightly higher than a policy that does require a medical exam, but your overall stress through the process will remain much lower.
If the said family member can open their email and sign the application and give consent to the policy being purchased in the first place, you will be all set and be able to complete the purchase for the life insurance coverage.
Don’t Ignore Guaranteed Issue Life Insurance for Your Mom or Family
If your family isn’t healthy or can’t qualify for what is known as level benefits life insurance coverage, don’t ignore the option to purchase guaranteed issue life insurance coverage. This is by far the most straightforward application any individual wishing to buy life insurance will ever go through.
No matter what the health conditions may be, you can still qualify for coverage if you are mentally capable of understanding the purchase and a US Citizen. No medical questions are asked on this application from start to finish.
The entire process takes roughly 10 minutes. In exchange for the risk the life insurance company is making by issuing this coverage, your family member or mom in this situation will have a 2-year waiting period placed on the full payout.
After 2 years has passed, the full death benefit will be available to you or the beneficiaries listed on the policy if your mom or other family member does happen to god forbid pass away.
Additionally, during the two-year waiting period, you are still afforded a full return of premium if your mom or other family member passes away plus 10% interest earned. Consider this option as a significant performing saving account for the first two years.
Accidental death is also covered starting on day 1, and after the two-year window has passed, you also have living benefits including in the policy meaning if you need to accelerate your benefit while living for items such as chronic, critical or terminal illness, you may do so.
This is a huge often overlooked perk with some life insurance policies. We recommend that you consider 1 of the two options if this is the kind of life insurance policy you are looking to purchase.
Both companies offer the two best-guaranteed issue policies we are aware of, and you can’t go wrong choosing one or the other. AIG is typically cheaper, so that’s usually are number 1 go to option in these situations.
Steps Involved Purchasing Life Insurance on Family Members
If you are close to pulling the trigger and know that you are likely to go through the process of purchasing life insurance for your mom or another family member, there are a few steps involved that you should be aware of.
Here’s the typical breakdown of what this process may look when applying for life insurance.
- Step 1- Speak to your mom or family member and determine the appropriate amount of coverage needed.
- Step 2- Speak to an Independent Life Insurance Agent or Agency to Determine Your Cheapest Overall Option for Coverage and Go Over Your Coverage Needs with Your Agent (We Can Help)
- Step 3- Apply for Either a Fully Underwritten, No-Exam, Guaranteed Issue or Final Expense Life Insurance Policy
- Step 4- Answer and Complete All Medically Related Questions (If Applicable)
- Step 5- Complete Signatures from Yourself and Your Family Member (Both Sets of Signatures Are Needed to Complete the Application)
- Step 6- Await Results of Underwriting (Unless Applying for No-Exam or Guaranteed Issue Life Insurance)
- Step 7- Rest Assured Knowing That You Have Protection in Place in Case The Unexpected Does Happen
Finding the Best Rates for Your Life Insurance for Family Member
Like we stated before, the best way to ensure that you get the best possible life insurance rates available is to work with an independent life insurance agent only.
Doing so can ensure that you are protected by the fact that all companies are in play and a large majority of life insurance carriers are options that are on the table.
When you have a life insurance company picked out, don’t be scared to let your agent shop the price after approvals with the other available life insurance companies to ensure you have the best possible rates for your policy.
What to Do Next?
Now that we have you convinced that this is possible and it’s a great path to take it’s time to start shopping life insurance rates. Determine or take a guess at the amount of life insurance coverage you believe you need to handle all end of life arrangements.
After doing so, fill out the instant quote form on the right-hand side of the screen. Once you have, your available options, your rates will display from over 50 carriers. If you have a carrier in mind at this stage, you can just select the quote and get more information regarding the policy.
Doing so will get the process at least started for you and allow you to begin shopping and comparing rates. You can always feel free to give us a call as well, we would love to help, and Good Life Protection handles cases such as this all the time.
Give us a chance to show you we honestly can find you the best rates with the least amount of hassle possible.
Putting It All Together. Mom, Dad, Sister or Brother. Life Insurance Is Possible
At the end of the day, life insurance is all about finding peace of mind and knowing that you are safe and secure if the unpredicted does happen. Finding the lowest rates is critical but just completing the process is even more critical.
Don’t let poor financial planning from a family member ultimately land on your shoulders and cause any more restless nights and lack of sleep. Your family deserves the peace of mind, and so do you.
So, what are you waiting for?
Can I Purchase Life Insurance for My Mom or Family from the Different States?
Yes, you can purchase life insurance on family members that are in different states. If both parties sign the application. Most life insurance companies offered (especially the companies that we provide) offer electronic signature applications.
If both parties (You and the insured) can sign the application via an email link, living in separate states won’t hurt your chances at purchasing life insurance.
Does My Family Member Have to Know About Life Insurance Coverage?
Yes, your family needs to be aware of the life insurance policy. No secret policies can be taken out.
When you purchase life insurance on your mom or another family member, a signature from the insured will be needed and often coverage requires specific personal questions to be asked about the insured included but not limited to information such as the following.
- Address (Correct and Current)
- Driver’s License Number (Motor Vehicle Report)
- Social Security Number (Identity Confirmation)
- Medically Related Questions
Are Signatures Required from Everyone to Purchase Life Insurance?
Yes, signatures are required by parties who enter into the contract for life insurance by law. This includes the premium payor (you) and the insured (your mom or another family member)
Can I Be the Owner and Payor of the Life Insurance and Receive the Death Benefits as Well?
Yes, you can be the owner of the policy, pay the premiums for the life insurance and be listed as the primary beneficiary on the life insurance policy. Just meaning, when tragedy does strike, after paying the premiums for the family member mentioned in this post, you can receive all the death proceeds of the life insurance policy if that’s the way you structure the life insurance policy.
FILED UNDER – LIFE INSURANCE 101