Can You Take Out Life Insurance on Your Parents?

Life insurance is a tricky thing to understand, but we have some basic guidelines that can help make understanding easier. It is always helpful to learn just who you can hold a life insurance policy on and who you cannot. For those that live in the Virginia Beach, VA area, the agents with Armor Insurance Group can help you tailor the perfect policy.

Life insurance is something that is great to have for yourself and your family. There are some rules, however, that pertain to who you can take a policy out on and who you cannot. You can, of course, take coverage out on yourself, your spouse, or your children because you have a vested interest in their lives and wellbeing. You would also be responsible for funeral costs should something happen to them. You can also take out insurance policies on other members of your family, but you must have a vested interest in their wellbeing.

An excellent example of this is taking out a policy on parents that live with you or that you take care of in your own home. You cannot simply take out a policy on your parents if they are in good health and take care of themselves as they are not going to be in need of care. If you are the legal guardian of your parents, you can certainly take out an insurance policy on your parents to help take care of their funeral costs should they die. When you are thinking about taking out an insurance policy on anyone, you should take the time to figure out who you can legally have coverage on and who you cannot.

For those that live in the Virginia Beach, VA area, the agents with Armor Insurance Group can help you adapt your policy to fit your needs. Reach out to our offices to learn more.