Many adult children quietly worry about who will pay for a parent's funeral or cover their remaining bills. One practical answer is to buy a life insurance policy on your parent. It's legal and common, as long as you follow a couple of key rules.
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Can you take out life insurance on your parents?
Yes, with two conditions:
- Insurable interest. You must have a financial stake in your parent's life, meaning you would face a financial loss if they died. Children almost always meet this test, especially if you'd pay for their funeral or share their expenses.
- Consent. Your parent must know about the policy and agree to it. They'll typically sign the application, answer health questions and may take a medical exam. You cannot secretly buy life insurance on someone.
How the roles work
- Insured: your parent (the person whose life is covered)
- Owner: you (you control the policy)
- Payer: usually you, though anyone can pay
- Beneficiary: usually you or a sibling
As the owner, you'll receive premium notices, so you'll know the policy stays active.
Best types of policies for parents
Final expense insurance
A small whole life policy, often $5,000 to $40,000, built to cover funeral costs and final bills. Many accept applicants into their 80s with simple health questions. This is the most popular choice for older parents. See our final expense guide.
Term life insurance
If your parent is in their 50s or 60s and in good health, a 10- or 20-year term policy can provide a larger benefit at a lower cost, useful if they still have a mortgage or debts.
Guaranteed issue
If your parent has serious health conditions, guaranteed issue coverage requires no health questions. Expect smaller amounts, higher prices and a two- to three-year waiting period before the full benefit is paid.
For more on age limits and options, read our guide to life insurance for seniors.
How much does it cost?
It depends on your parent's age, health, tobacco use and the coverage amount. A $10,000 to $15,000 final expense policy for a healthy parent in their 60s often costs far less per month than a parent in their late 70s pays for the same coverage. That's why applying sooner usually saves money.
How to bring it up with your parent
- Frame it as help, not a burden. "We want to make sure nothing falls on you or on us unexpectedly."
- Be clear about the purpose, such as funeral costs or a remaining mortgage.
- Have a short call with a licensed agent together so your parent can ask questions and answer the health portion directly.
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Frequently asked questions
Can I buy life insurance on my parents without them knowing?
No. Insurers require the insured person's consent, usually with their signature on the application.
What age is too old for life insurance?
Many final expense and guaranteed issue policies accept applicants up to age 80 or 85, depending on the insurer.
Can I be the beneficiary on my parent's life insurance?
Yes. Children are commonly named as owner and beneficiary on a policy covering a parent.
Is the payout taxable if I'm the beneficiary?
Life insurance death benefits are generally not subject to federal income tax for the beneficiary. See our guide: Is life insurance taxable?
What if my parent has health problems?
Many parents with common conditions still qualify for simplified issue final expense coverage. Guaranteed issue is available if they can't qualify elsewhere.
This article is general information, not insurance or legal advice. Rules and eligibility vary by insurer and state.