Life Insurance for Parents

Why Should You Buy Life Insurance for Parents?

The main reason to buy life insurance for elderly parents is that it helps secure their financial future and enables them to create a financial safety net if something happens to the life assured or one of the parents. The other reasons include —

• Serves as an Income Replacement – The life plan for parents acts as a financial safety net that replaces income if a parent passes away. This helps the surviving parent and other dependents maintain a decent lifestyle and complete the financial obligations
• Covers Outstanding Debts – You can use the payout to settle your parents’ outstanding debts – loans, mortgages, or credit card balances. This will help the surviving parent and family members to focus on other aspects of life
• Relocating the Surviving Parent – If one of the parents passes away, you can use the fund to support the surviving parent in living a better life. This amount can help them handle their lifestyle costs and live a debt-free life
• Creating an Inheritance or Legacy for Children/Grandchildren – Life insurance for parents can help them plan their estate for children and grandchildren

Types of Life Insurance for Parents

When you are considering the types of life policies for parents, you have to factor in their age, health conditions, and financial goals. Based on these three major factors, here are the following are the types of life insurance coverage for parents —

How to Get Life Insurance for Parents in the UAE?

Once you and your parents have selected a policy that aligns with their needs, you can proceed with the application through your chosen insurance provider. Here’s how the process works —

• Submit the Application – Each parent must complete a separate application form with basic personal details such as their Social Security number, age, height, weight, and lifestyle habits like smoking or drinking. They will also need to provide a medical history. The application process is usually quick and straightforward
• Medical Underwriting – Depending on the policy, your parents may need to answer additional health questions, undergo medical tests (such as blood and urine tests), or have a physical examination. This step helps the insurer assess their health risks
• Review the Coverage Offer – After medical underwriting, the insurer will determine if your parents qualify for coverage, the premium amount, and the payout. This step may take a few weeks
• Finalise the Policy – Once approved, you can review the policy details, including the coverage amount and premium. To activate the policy, the first payment must be made. If you have an insurable interest, meaning your finances would be affected by their passing, you might prefer to be the policy owner to manage payments and avoid lapses

Things to Consider When You Plan to Buy Life Insurance Coverage for Parents

Selecting the right life insurance policy for your parents requires careful evaluation of several important factors —

• Future Financial Goals – Think about what your parents want to achieve financially. Are they preparing for retirement, hoping to leave an inheritance, or planning to support a cause they care about? A suitable policy can help them reach these goals and ensure long-term security
• Coverage Amount – Assess their current financial situation, including income, expenses, debts, and future needs. Consider rising living costs to choose a coverage amount that provides adequate protection
• Policy Features and Benefits – Compare different policies based on their benefits, coverage terms, and flexibility. Ensure the selected policy aligns with your parents' needs and offers valuable features such as riders or add-ons
• Premium Affordability – Once you shortlist policies, compare premium quotes. Choose one that balances affordability with sufficient coverage, ensuring your parents can comfortably maintain their policy
• Insurance Provider’s Reputation – Research the insurer’s financial stability, claim settlement history, and customer service quality. A well-established company ensures reliability and hassle-free claim processing
• Policy Terms and Conditions – Carefully review the policy documents to understand inclusions, exclusions, waiting periods, and claim procedures. Knowing these details in advance helps avoid surprises and ensures a well-informed decision