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When is it the right time to take out a life insurance policy?
For every visit that you take home to visit your parents you realise that their wrinkles on their face have become deeper and their hair greyer. You also realised that they play an integral role in your life and you will be devastated if you lost them. Although taking out a life insurance policy to cover them may not replace them, but it can ensure that they are buried with dignity. Taking out a life insurance policy is suitable for any time. However, there may be a limit to what type of policies you will have access to based on their age. Life insurance is not only about covering funeral expenses, but it can also be beneficial in the event where your parent is a guarantor on your home loan or they are taking care of your children. Whatever physical and financial support your parents offer needs to be considered when they are no longer around.
The benefits of taking out a life insurance policy for your parents
Your parents can still benefit from having life insurance in more than one way. It can still cover their financial obligations when they are no longer around, but it can also:
- It can protect them from uncertainties. The older your parents become the more likely they are to be susceptible to falling ill or sustaining an injury. You can provide a safety net with life insurance policies such as Trauma insurance which covers critical illnesses or TPD insurance for total and permanent disabilities.
- It can continue their supportive role. Taking out a life insurance policy can ensure that the financial support your parents provided is still in place, meaning that it can be used to take care of their partner, grandchildren, and any expenses that they use to help with you with.
- Cover for people up to 100 years old. Depending on your lender you can find various policies that cover people from a minimum age of 69 years to 100 years.
What policies will be suitable for your parents?
Insurers will differ on the type of policy they provide. Therefore, it will be financially beneficial to compare your options. This also means checking if they meet the criteria. You can also check if it offers tailor-made features for your parents and their circumstances. Some of the policies that can be suitable for your parents are:
- Funeral insurance is a life insurance policy that pays out a lump sum as soon as your claim is processed. This can be beneficial in taking care of your immediate expenses and other funeral costs that will arise.
- Accidental death insurance covers your parents in the event when they pass on due to an accident.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
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Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.
Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.