Updated: May 22, 2024
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The best life insurance for you may differ depending on your specific needs and circumstances. For parents, finding a company that balances quality service and value for money may be an important consideration.
MoneyGeek ranked top-rated insurance companies and found Nationwide to be the best overall insurer for parents, earning a MoneyGeek score of 97. For elderly parents, GEICO is the top choice. Parents looking for whole life insurance policies may find State Farm a good option.
BestLife Insurancefor ParentsBest Life Insurance Companies for Parents in 2024
Why Trust MoneyGeek? We analyzed 1,488 life insurance quotes alongside customer satisfaction, financial stability reports, product offerings and more to determine the best life insurance companies for parents.
Coverage costs and company information for life insurance providers were updated in 2024.
Nationwide, with a MoneyGeek score of 97, stands out as the top life insurance provider for parents. It earns high ratings across categories, including affordability, financial stability, buying process, customer satisfaction and product diversity, reflecting a balance in cost and quality service. On average, Nationwide's 10-year term policy with $250,000 in coverage costs $16 per month.
How was this MoneyGeek score calculated?
MoneyGeek analyzed leading life insurance companies for individuals in their 40s, focusing on the following criteria and weightings:
The premiums are for a 10-year term life insurance policy with $250,000 in coverage. MoneyGeek gathered these premium rates by utilizing a standardized profile as follows:
Diverse products, including term and whole life policies
Excellent customer satisfaction and financial stability ratings
Offers riders, such as children's term insurance and living benefits
Limited to a maximum $1.5 million term coverage
Fewer term length options compared to some competitors
No-exam product availability may vary
Nationwide, with 97 years of experience in the insurance industry, presents a robust selection of life insurance options catering to parents. The company's offerings range from $250,000 to $1.5 million in term coverage, with 10-, 15-, 20- or 30-year term lengths. Nationwide's commitment to parents is evident in its diverse product lineup, including term, whole and universal life policies, specialized riders like children's term insurance and living benefits riders. These features, combined with a user-friendly mobile app and multiple payment options, make Nationwide an ideal choice for parents seeking reliable, comprehensive life insurance solutions.
GEICO stands as the best life insurance choice for senior parents, with a MoneyGeek score of 97. GEICO offers an average $250,000 10-year term policy at $176 monthly through its partnership with Ladder and others.
High financial stability with A++ AM Best rating
Low customer complaint rate enhances satisfaction
Extensive term coverage up to $8 million through its partners
Limited product diversity
No direct issuance of life insurance policies
Multiple payment options not available
With 87 years in the industry, GEICO's approach through partners like Ladder offers term coverage amounts ranging from $100,000 to $8 million and term lengths between 10 and 30 years. While the product diversity might be limited, GEICO excels in financial stability and customer satisfaction, making it a solid choice for senior parents who prioritize straightforward, high-value term life insurance. The availability of a no-exam product further enhances its appeal to senior parents seeking efficient and accessible life insurance options.
State Farm is the leading choice for whole life insurance for parents, earning a MoneyGeek score of 99 in this category. Their century-long experience and comprehensive product range, including a specialized whole life policy, cater specifically to the long-term security needs of families.
How was this MoneyGeek score calculated?
MoneyGeek evaluated life insurance carriers to determine the top providers of whole life insurance for parents, using these weightings:
We did not consider affordability in our assessment, as quotes for whole life policies were not collected. The company that ranks highest among those that offer this type of insurance is listed below.
A++ AM Best rating ensures financial reliability
Diverse product range, including whole and term life
Offers no-exam insurance options for convenience
No 24/7 online chat support for immediate assistance
Limited term lengths for whole life policies
State Farm, boasting 101 years in the insurance industry, stands out as MoneyGeek's top provider of whole life insurance for parents. The company's Limited Pay Whole Life product, with level terms of 10, 15 or 20 years, offers lifelong coverage, ensuring long-term security for families. State Farm's commitment to parents is further highlighted by its range of products, including term life, universal life and guaranteed issue final expense insurance, designed to cover funeral and burial costs. The availability of a no-exam insurance option and a user-friendly mobile app and their financial stability and customer satisfaction make State Farm a top choice for parents seeking comprehensive and reliable whole life insurance solutions.
Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.
Life insurance can help pay off your parents’ final expenses and debts. But it may not be worth it to get life insurance for your parents, especially if you aren’t dependent on their income.
Buying insurance for yourself is often a better option. It may also not be worthwhile to purchase life insurance for a parent if you have enough savings to cover the cost of final expenses.
Life insurance can be expensive for elderly parents. Instead of paying costly premiums, saving the money and investing it for better flexibility may be better. Additionally, you won’t have to deal with complicated paperwork.
It’s often harder to insure elderly parents because of their age. Insurance providers often correlate old age to health concerns. If you think it’s necessary to purchase life insurance for elderly parents to cover possible final expenses, policies like the simplified issue and guaranteed acceptance are ideal.
Although standard life insurance policies, such as term, whole and universal, are also valid choices, the following are recommended for seniors:
Term Life Insurance
Term life insurance provides temporary coverage for a fixed cost. Generally, this is the best option for parents because of its affordability compared to other life insurance types. New parents can choose this for cheaper premiums so they can have extra money to save or invest.
Although seniors may not always get accepted for term life insurance, it’s often smart to try applying for this first.
Simplified Issue Life Insurance
Parents looking for coverage that doesn’t require a medical exam may find simplified issue life insurance the best option. This type of coverage is ideal for people with serious health concerns.
Applicants may still need to answer some health-related questions depending on the insurance company. Additionally, insurers may also reject applicants.
Since there is no need for a medical exam, the application process for simplified issue life insurance is typically faster. However, premium rates are often higher than traditional policies.
Guaranteed Acceptance Life Insurance
Guaranteed acceptance life insurance is a type of whole life insurance that offers approval regardless of the applicant’s health status. It doesn’t require medical exams or health questions. Typically, seniors between 50–80 years old get instant approval after completing the application process.
This type of policy is best for those needing coverage but have been denied simplified issue life insurance due to serious health issues.
Guaranteed acceptance coverage usually has low coverage and high premiums.
It would help to consider various factors when looking for the best life insurance for parents. Shopping around and comparing coverage and features can help you choose the right policy.
For many parents, term life insurance may be the best option. Instead of paying higher premiums for whole life insurance, consider investing the rest of the money into a high-interest savings account or low-risk investment.
The right amount of life insurance coverage depends on individualized factors. Considering your needs and circumstances will help you determine how much coverage you need.
As a rule of thumb, an individual should purchase a policy with coverage amounting to 10X their salary. However, this doesn’t apply to seniors who may no longer be employed.
Below are some of the considerations that can help evaluate your coverage needs.
According to the National Funeral Directors Association, the national median funeral cost with viewing and burial is $7,848. With rising costs, final expenses can be around $10,000 in the next few years.
You wouldn’t want to leave your loved ones with a financial burden. Include all your debts when calculating your life insurance coverage amount.
Life insurance can help with estate planning. Your beneficiaries can use the proceeds from your policy to pay off estate or inheritance taxes. Furthermore, life insurance proceeds are typically tax-free.
For new parents, life insurance ensures financial protection for their children. When calculating coverage needs, it’s best to multiply your annual salary by 10. Consider expected or planned financial obligations, such as college funds and mortgage.
You may also want to consider your children’s possible future expenses like special care needs and higher education. If you have student loans and other debt, include them in your calculation as well to prevent leaving behind a huge financial burden on your loved ones.
Buying life insurance for your parents can help cover possible end-of-life expenses, such as medical and funeral costs. However, purchasing a policy for your parents isn’t as simple as getting a policy for yourself. There are multiple steps you need to accomplish.
Below is a simple guide to help you get started.
You can’t purchase a policy without your parents’ knowledge. You need to ask for their consent.
Start the conversation about life insurance with them. Discuss their options and explain why you are considering enrolling them in a policy.
If they agree to buy life insurance, you can proceed with the next steps.
When buying life insurance on your parents' behalf, you must demonstrate your insurable interest. You have to prove that the death of the person you want to insure will financially impact you.
Typically, this process includes the submission of identification and a phone interview. Some companies may also require a medical exam.
The best way to find the right life insurance policy is to shop around. Compare policy features, coverage and rates. Ideally, you should get quotes from at least three insurance companies to get a good idea of how much your parents’ policy will cost.
Ensure you get proper coverage by calculating possible financial obligations your parents may leave behind. If they’re the ones to pay the premiums, ask them how much they can afford. It’s also important for you to check if they have current or anticipated health issues.
Choose the insurance company that gives you the best offer. Ask the agent about their application process. Prepare all necessary information and documents. Verify if a medical exam is necessary.
The application may be completed online, over the phone or in person, depending on the insurance company. The approval and activation timeline also vary per insurer.
When completing the application process, working with your parents is best. This ensures that they’re aware of what their policy covers.
It’s important to note that getting life insurance for your parents requires their permission. You can’t purchase a policy on their behalf without their consent. Insurance companies will verify if your parents have approved the purchase to avoid fraud.
Depending on your situation, purchasing life insurance for your parents can be beneficial. MoneyGeek answers some frequently asked questions about parental life insurance to help you make a well-informed decision.
Based on MoneyGeek’s analysis, the best overall insurance company for parents is Nationwide. Elderly parents may find GEICO as the top option, while State Farm is MoneyGeek's premier choice for whole life insurance policies.
Buying life insurance for your parents can be beneficial, depending on your family’s circumstances and needs. For example, if you’re concerned about possible health issues, purchasing a policy to help cover their medical bills may be a good idea.
No, you need to get your parents’ consent to purchase a life insurance policy on their behalf.
The right coverage amount will depend on your situation. As a rule of thumb, it’s best to multiply your salary by 10. Consider your current debts and possible financial obligations, too.
About Mark Fitzpatrick
Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
