here are many different types of insurance, and which one is best for your parents depends on a lot of factors, including their age and medical condition. There are some general guidelines that can be applied, and your options will vary according to state and company specific rules as well. Which type of policy is best for your needs will vary according to what you are trying to accomplish, but there are a number of options available.
Final expense insurance is available and specifically marketed to people over 50. This type of policy does not require a medical examination, and has low monthly payments. The payout is typically low, and in some cases you may have to name a funeral home as the sole beneficiary. If the main concern is paying for the funeral plot and other burial costs, this type of policy is affordable and designed for the purpose.
Term life insurance policies are affective for a limited amount of time, as defined in the policy. Term life is more expensive than final expense insurance, but it is a lot less expensive than whole or permanent life. Term life policies are typically used to make sure that life goals can be met even if the insured person passes away, such as setting a policy to pay off a mortgage or to provide tuition money for a child's college education. Term life policies may require a medical examination, depending on the issuing company, the amount of the policy and the term being insured.
Permanent life insurance is the more expensive type of life insurance, but permanent life policies have an accrued cash value that can be utilized while the insured is still alive. This is the most powerful type of policy, and allows the policy owner to make use of the accrued funds by borrowing, tax-free, against the cash value. This type of policy will require a medical examination, and the premiums for the policy will be based, in part, on the age of the insured person. Whole life policies are best purchased early in life, but it is a viable choice if your parents are in good health and you are willing to pay a hefty initial premium.