Get Life Insurance on Parents without Permission

For those who have parents over the age of 80-years-old, it is tempting to purchase life insurance in their name to cover the cost of potential funeral expenses, outstanding debt, and provide a financial cushion for the surviving spouse. While the concern is real, is it legal to purchase life insurance on a parent without their consent?

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Can You Purchasing Life Insurance for a Parent without their Consent?

Take Written Permission from Parents before Buying Life Insurance

Try to Convince Your Parent and Take Written Consent Before Getting a Coverage for Them!

The short answer is no; you cannot make such a purchase without the parent’s approval. There are several reasons why you cannot, but the primary one is to avoid fraud and wrongdoing on the part of those who may have less than ideal intentions that yours. It is not legal for you to purchase life insurance that makes a parent or anyone else the policyholder without their knowledge.

Yes, it can be done illegally, and many have tried. However, very few have succeeded because insurance companies are diligent in checking out the information. This is especially true when it comes to paying off the beneficiaries. So, it is not legal nor recommended that you purchase life insurance that makes someone else the policyholder unless you have their written permission.

Related: Tips to convince your parents to purchase a life insurance.

Whom I Can Buy a Policy for?

You can only buy life insurance that makes someone else the policy holder if they are a close relative such as a parent, grandparent, or child. Each insurance company has their set of rules when it comes to who can be the policy holder, but a close relative is a qualification.

Keep in mind that the policyholder does not have to pay for the insurance themselves. Arrangements can be made so that you can pay for the premiums in the place of your parents. Depending on the type and amount of the insurance purchased, the obligation of the parent ranges from providing their written permission up to answering health questions and having a medical exam or test.

Why do People want to Purchase Life Insurance for Parents over 80?

There are several reasons why people want to purchase life insurance coverage for their parents, but the primary one is to provide financial coverage in case the worst should occur. Many people will buy funeral insurance or pre-paid plans that cover burial expenses so that burden does not have to be addressed when their loved one passes away.

Another reason is the desire of a parent to provide a legacy for their children or grandchildren when they may not have the financial means to pay for the premiums. This allows for an ample benefit that addresses college tuition, a down payment for a home, or other expense that the life insurance can provide.

Although the temptation to purchase life insurance for your aging or home stay parents without their knowledge may be strong, it is not legal nor desirable to do so. If you can pay the premiums, then getting the parent’s permission is not only desired but wanted as it will help you address this touchy subject.