What's required
Three things, and none can be skipped:
1. Your parent's consent. They must know about the policy and agree to it. Insurers will not issue a policy on someone who hasn't agreed to be insured.
2. Their participation in the application. They answer the health questions (unless you choose a guaranteed-acceptance policy, which has none) and they sign — by phone, electronically, or on paper depending on the insurer.
3. Insurable interest. You'd suffer a financial loss when they die. For an adult child paying funeral costs, that's automatic; insurers only ask for an explanation on large policies well above final expense amounts.
A power of attorney does not replace your parent's own consent. Insurers set their own rules and, in practice, none accept a POA in place of the insured's agreement. If a parent won't participate, a prepaid arrangement with a funeral home is the fallback.
Who should own the policy
A life insurance policy has three roles: the insured (your parent), the owner (who controls the policy and pays for it), and the beneficiary (who receives the money). You can fill both the owner and beneficiary roles. Owning the policy means only you can make changes, only you get the bills, and the premium can't lapse because of a missed payment on a fixed income. Name a contingent beneficiary too — a sibling, or your own spouse — in case something happens to you first.
If your parent would rather own it and name you beneficiary, that works as well. What matters is that someone reliable is paying the premium, because a lapsed policy pays nothing.
What it costs
The price depends on your parent's age, health, tobacco use and the amount of coverage. For $10,000 of coverage, national averages for a nonsmoker run about $50 to $66 a month at 65, $64 to $84 at 70, $87 to $113 at 75, and $125 to $164 at 80 (women at the low end, men at the high end). Our rates-by-age guide has the full table. The premium is fixed for life with a whole life policy, so buying at 72 rather than 78 saves money every month for as long as they live.
How much coverage makes sense
Start with what a funeral actually costs where your parent lives. The national median for a funeral with viewing and burial is $8,300, or $9,995 with a vault, before the cemetery plot and headstone. A funeral with cremation and a viewing is about $6,280. Add any medical bills or debts you'd end up covering. For most families, $10,000 to $20,000 is the range. See the full breakdown in our funeral cost guide.
If your parent has health problems
That's normal at this age and usually not a barrier. Policies that ask a few health questions cover many conditions — controlled diabetes, high blood pressure, past heart problems — and pay in full from day one. For serious or recent conditions, a guaranteed-acceptance policy asks no health questions but has a two-year waiting period for natural causes. For a parent with dementia, guaranteed acceptance is generally the path, and you'll help with the application. Our health conditions guide goes condition by condition.
How to bring it up
Most parents aren't offended by the question; they're relieved someone asked. A few approaches that tend to go well:
• Make it about the family, not about them. 'I'd rather we sort this out now than have the three of us figure it out in a hard week.'
• Offer to handle it. Many parents don't want to deal with paperwork or a bill. Owning and paying for the policy yourself removes both.
• Bring a number. 'A funeral runs around ten thousand dollars around here' turns a vague worry into a plan.
• Ask what they'd want. Burial or cremation, where, what kind of service. The conversation about wishes is often easier than the conversation about money, and it leads there naturally.
• Keep it short. One conversation to raise it, another to make the call together. The application takes about fifteen minutes by phone.