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Step 1
Show "insurable interest." This pertains when someone would suffer a loss upon the death of a person, usually a spouse or dependent. Insurable interest typically also applies to a parent.
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Step 2
Determine the type of insurance you need---term or whole life. Term insurance pays only if death occurs during the length of the policy---usually from one to 30 years. Whole life insurance pays a death benefit whenever the policyholder dies.
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Step 3
Identify the coverage you will need by determining the use of the life insurance policy after your parent's death. If you need the policy to help pay for burial expenses, you may only need a small policy. However, if there are outstanding medical expenses or estate taxes, you may need a larger policy.
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Step 4
Contact your insurance company to get a quote on life insurance for your parent. You may be able to get a discount if you have multiple insurance policies through one company.
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Step 5
Compare life-insurance policies from the major insurers, including Prudential, MetLife, AIG and Gerber. Compare the costs, coverage and features of each policy. Also consider the financial viability of the insurance company.
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Step 6
If your parent is a veteran, contact the Department of Veterans Affairs. (See Resources.) The government provides insurance benefits for veterans who are unable to get insurance from private companies due to disabilities connected to military service.
