You’re the planner in your family. You’re the one who thinks ahead, and you’ve realized that when your parents pass away, you will likely be the one responsible for their final expenses.

You’re not being morbid; you’re being responsible.

The average funeral now costs over $8,300, and that doesn’t include the headstone or cemetery plot. You’re not just planning for a “what if” scenario; you’re planning for a “when” scenario. Helping your parents get a final expense policy is a profound act of love. It ensures you can focus on grieving, not on a five-figure credit card bill.

But how do you… do it? The process can feel awkward and confusing. This 5-step guide will walk you through it.

Key Takeaways

• Yes, you can buy it: As an adult child who would be financially responsible for the funeral, you have a legal “insurable interest.”
• Your Parent Must Consent: Your parent is the “Insured” and must consent to the policy and (in most cases) sign the application.
• You Can Be the “Owner”: You can (and should) be the policy “Owner” and “Beneficiary,” meaning you pay the premiums and receive the tax-free payout.
• A Final Expense Policy is the Right Tool: A small whole life policy is designed for this. It’s permanent, and the rates are locked in for life.
• The Conversation is the Hardest Part: We’ll give you a checklist to help you prepare.

Your Pre-Conversation Checklist: (3 Things to Do Before You Talk)

This is the most important step. Being prepared will make the conversation easier and more successful.

• [ ] 1. Get a Ballpark Quote: Before you talk, get a free, anonymous quote. It’s much easier to say, “Mom, for about $50/month, we can get this 100% covered.” Vague costs are scary; a real number is a simple problem to solve.
• [ ] 2. Frame Your “Why”: Rehearse your opening line. Make it about love, responsibility, and their wishes. (e.g., “I want to make sure I can honor your wishes perfectly, without ever having to worry about money.”)
• [ ] 3. Prepare for Objections: Be ready for “I don’t want to think about that” or “I’ve got it covered.” Your calm response should be, “I understand completely, but having a simple, dedicated plan would give me so much peace of mind.”

Step 1: Have an Honest, Empathetic Conversation

Now that you’re prepared, find a calm, quiet moment. Come from a place of love and planning. The goal isn’t to talk about death; it’s to talk about honoring their wishes.

You can try one of these simple scripts:

• “Mom, I was thinking about the future and I want to make sure I honor your wishes perfectly when the time comes. Can we talk about a plan for it?”
• “Dad, I never want us to have to worry about money during a stressful time. I’m looking into a small final expense plan to cover all those costs. Can we go over it together?”

For more tips on this, organizations like on navigating these conversations.

Step 2: Understand the 3 Key Roles (Owner, Insured, Beneficiary)

Life insurance has three roles. When buying for a parent, you will likely be two of them. This table makes it simple.

Role	Who It Is (Usually)	Key Responsibility
The Insured	Your Parent	Gives consent & answers health questions.
The Owner	You (the adult child)	Pays the monthly premiums.
The Beneficiary	You (the adult child)	Receives the tax-free money to pay for costs.

Step 3: Confirm You Have “Insurable Interest”

This is a legal term that just means you would suffer a financial loss if the person passed away. As the adult child who will be responsible for the funeral costs, you have a clear and obvious insurable interest. This is the legal and ethical green light you need.

Step 4: Choose the Right Kind of Policy

Your parents don’t need a 30-year term policy. Their need is permanent, so they need a permanent policy.

The correct tool is a Final Expense Policy. This is simply a small “whole life” policy with key benefits:

• It’s designed to cover funeral costs (e.g., $10,000 – $25,000).
• The premium is locked in for life and will never increase.
• The benefit will never expire.
• It has no-exam options so you can apply from their kitchen table.
  

Step 5: Gather Their Information (and Apply Together)

Once your parents are on board, the hard part is over. The application itself is fast. To get a real, accurate quote and complete the application, you will need:

• [ ] Your parent’s full legal name and address
• [ ] Their date of birth
• [ ] Their Social Security Number
• [ ] A list of their primary medications (for a Simplified Issue application)

The best way to do this is to sit with them and fill out the form together. This transparency ensures they are part of the process.

A Quick Note on Ethics: Is This ‘Greedy’?

It’s normal to feel awkward, but let’s be very clear: this is the opposite of greedy. You are proactively taking on a future financial responsibility. You are the one who will be paying the monthly premiums. You are doing this to protect your family from a future financial crisis. This is an act of profound responsibility.

Frequently Asked Questions (FAQ)

1. Can I pay the premiums for my parent? Yes. As the policy “Owner,” you can set the billing information to be your own. The monthly payments will come directly from your bank account.

2. What if my parent has significant health issues? This is exactly why these policies exist. If your parent has serious health conditions, a Guaranteed Issue policy is the perfect solution, as it has no health questions and approval is guaranteed.

3. What if my parent is on a fixed income and has no money? That’s okay. This policy is for them, but it’s a gift from you. As the owner, you will be handling the low, fixed monthly payment. This protects their small budget and your future savings.

4. Is it better to just set aside money for their funeral? As we covered in our myth-busting article, a savings account is risky. It can be frozen by the bank at death or depleted by end-of-life medical bills. A life insurance payout is instant, tax-free, and protected from creditors.

5. What if my siblings and I want to split the cost? This is a great team approach. The best way is to have one person be the ‘Owner’ (who is legally responsible for the payment) and have the other siblings send them their share each month. The insurance company can only have one Owner on the bill.

A Final Act of Responsibility

Helping your parents with this plan is one of the most loving and financially responsible things you can do. You are protecting them, yourself, and your entire family from a future financial burden.

At Sagewise, we help families navigate this conversation every day.

Start the process today. Get a free, instant quote with your parent and get this vital plan in place.