You can buy a whole life policy for your children as soon as they are born, provided you had a healthy birth. You can buy it for your parents with their permission and insurable interest.
We’ll show you exactly how to do both right here.
It’s possible to purchase life insurance on behalf of your parents in Canada. However, you need to keep two things in mind:
Having insurable interest means you expect to experience financial loss if the person passes away (in this case, your parents). If you’d gain from the loss, it could cause you to do the unthinkable out of greed.
You get automatic insurable interest in the lives of yourself and your spouse, children, employees, business partners, and grandchildren. But it’s not a guarantee when it comes to parents.
If you don’t attain your parents’ consent, you can’t acquire life insurance for them. Why? Because the underwriting process requires them to answer medical questions accurately. Plus, they’ll likely need to pass an in-person health exam, which involves:
Without their consent and agreement to attend a medical check, you can’t obtain a life insurance policy.
Life insurance exists to pay for funerals, cover outstanding debts, and support dependent individuals. So, the reasons behind buying life insurance for your parents are the same reasons behind buying it for yourself.
Numerous situations make it more suitable for you to take out a policy for your parents rather than them buying one for themselves, such as:
No one-size-fits-all answer applies here. Every family is different, and thus, the insurance policies needed differ too. Booking a consultation with Sim Gakhar ensures you make the right decisions.
Your parents’ ages and health status dictate the type of insurance available. Additionally, it might be worthwhile to consider purchasing option riders for them, like disability cover, terminal illness, and similar.
Regardless of the kind you buy for them, the premium will be higher than yours.
It begins the same way as purchasing life insurance for yourself. Begin by looking at various life insurance quotes using your parents’ information and speaking to an advisor.
Once you’ve evaluated your options, you’ll have a clearer picture of how much it’ll cost — and, therefore, whether you can afford it.
Okay, we’ve covered every angle of purchasing life insurance for your parents. So, it’s time we answer your next burning question — can you buy it for your kids?
The answer is yes! While it’s not the first thing your new-parent brain thinks about, it can save you a lot of extra financial pressure should your child become ill.
No, it’s not mandatory. But acquiring a policy for your bundle of joy can make financial life easier should the unthinkable happen. Often, parents with sick children incur substantial financial losses, and while it won’t heal your heart, it can help you keep a roof over your head.
Purchasing life insurance for your baby becomes more reasonable when you consider the stats — every year, around 2,000 babies born in Canada pass away before they turn one year old. This mortality rate is the same as 55- to 60-year-olds who mostly have life insurance. With that in mind, insuring young children doesn’t seem so pointless.
Most Canadian insurers allow you to buy life insurance immediately as long as you have a healthy birth. However, others stipulate your baby must be at least 15 days old before they’ll insure them.
Throughout the application process, you need to answer questions about your child’s health. Some insurers require your little one to pass a medical exam before enacting the policy, so wait times vary drastically.
You can purchase life insurance for your children in multiple ways. The main methods are as follows:
The life insurance world is complex, especially when you’re purchasing a policy for someone else. But Sim Gakhar can help take the pressure off. Book a consultation now.
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