Can I Buy Life Insurance for My Parents?

Yes. The owner of the life insurance policy and the insured individual can be two different people. But you'll need your parent's consent. They will need to sign the application and undergo a medical exam, if required. You may also have to demonstrate that you have an insurable interest in them. This means you would suffer financially or emotionally as a result of their death. Parents often fall into the latter category.

What Does Life Insurance for Parents Cost?

The cost of life insurance for parents depends on a variety of factors, including tobacco use, health, occupation, the type of policy, and the policy’s death benefit. For a healthy 25 year-old, we found monthly premiums for a 30-year $250,000 term policy to range from as low as around $15 to over $30, depending on the company and whether the policy was convertible. Life insurance is cheaper the younger and healthier you are, and term life insurance policies are cheaper than permanent policies.

Why Should Parents Buy Life Insurance?

Generally speaking, parents should buy life insurance as a way to provide financially for their children if they happen to pass away while their children still depend on them. If you're buying a policy for your parents because they're aging, life insurance is a good way to ensure you have the funds to cover the cost of your parents' funerals and burials.

What Does Life Insurance for Parents Include or Exclude?

Life insurance policies for parents tend to include all the same features someone without kids would have. For term policies, you'll usually have a monthly premium, a death benefit, and the option to add riders to your policy that can cover specific situations.

How Much Life Insurance Should You Have as a Parent?

It depends. There are several popular formulas for calculating how much life insurance you should have. A few include multiplying your income, then adding the cost of sending each of your kids to college; adding up the cost of your debt, income, mortgage, and your kids' education; and getting a policy that can cover the equivalent of 30 times your income if you're 18-40, 20 times your income if you're 41-50, and 15 times your income if you're 51-60.

What Life Insurance Is Best for New Parents?

In general, term life insurance is a good choice for new parents who are younger than 40 because premiums are reasonable and you can typically obtain a good amount of coverage. After 40, it may benefit you to get a whole life or universal life insurance policy. Premiums will be higher, but, unlike term policies, which usually last 30 years or less, a whole life policy covers you your entire life.

Best Life Insurance for Parents of 2024

Having life insurance provides valuable protection. If you have young children, a life insurance policy can ensure they’re financially supported in the event of your death. You might also want to get life insurance for your aging parents; you'll want to check out the best life insurance for people over 50, the best life insurance for seniors, and the best burial insurance companies as well. To select the top life insurance for parents, we analyzed 91 insurance companies and more than 50 data points across categories including A.M. Best financial stability ratings, National Association of Insurance Commissioners (NAIC) complaint rates, J.D. Power rankings, as well as product specifics like maximum coverage amounts, maximum issue ages, and available riders.

Best Life Insurance for Parents of 2024

Best Overall: Protective
Best for Customer Satisfaction: State Farm Life Insurance
Best for Whole Life: Nationwide
Best Burial Insurance: Mutual of Omaha
Best for Financial Stability: Northwestern Mutual
Best for Older Parents: New York Life

Companies reviewed

Features considered

5,005

Data points analyzed

We collected over 5,000 data points from 91 life insurance companies to measure financial stability, customer satisfaction, product and feature variety, and the overall buying experience. We then evaluated each company based on 55 metrics to develop unbiased, comprehensive reviews.

Read our Full Methodology

with our partner Covr Financial before buying.

Best Overall : Protective

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A
Accepts Credit Cards: Yes

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Pros and Cons

Pros

Very affordable term insurance premiums
Term lengths of up to 40 years
Good selection of policy types
Can apply online
Superior financial strength rating

Cons

Ranked below average for customer satisfaction

Why We Chose It

Protective is an excellent insurance company overall and, in particular, it provides multiple types of life insurance policies that can fit the financial and long-term needs of parents.

Overview

Protective offers a wide range of policy types, including term, universal, indexed universal, variable universal, and whole life insurance. The only notable life insurance product missing from its lineup is final expense insurance. Plus, the company has an A+ (Superior) grade from AM Best for financial strength.

Specifically, we recommend Protective for parents who are looking for affordable term life insurance. When we compared term life insurance quotes among the 91 companies we reviewed, Protective offered the cheapest rates for healthy adults (tied with Banner). In addition, Protective is one of only two companies we found that offers term lengths of 40 years. For comparison, most life insurance companies cap the length of their term policies at 30 years. That means Protective can be a good option for parents who want coverage for longer than 30 years, but don’t necessarily want a permanent policy or can’t currently afford the higher premiums associated with a permanent policy.

However, the company didn't fare well in J.D. Power's 2021 U.S. Individual Life Insurance Study. It ranked 16th out of 21 companies in the study.

Also, Protective won "Best" designations in our roundups of the most affordable life insurance companies, best life insurance companies for children, and best term life insurance companies.

Learn more in our Protective life insurance review.

Read the Full Protective Life Insurance Review

Best for Customer Satisfaction : State Farm Life Insurance

Investopedia's Rating

3.7

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A++
Accepts Credit Cards: Yes

Get A Quote

Pros and Cons

Pros

Excellent third-party ratings for customer satisfaction
Few complaints for its size
Savings for bundling life and auto insurance

Cons

No living benefits included
Relatively expensive term life premiums
Can’t apply online

Why We Chose It

When it comes to satisfied life insurance customers, it’s hard to beat State Farm. In J.D. Power’s 2022 U.S. Individual Life Insurance Study, State Farm earned first place out of 22 life insurers for overall customer satisfaction.

Overview

Plus, the company received very few complaints over the past three years, according to the NAIC. It also has an A++ (Superior) financial strength rating from AM Best, which is the highest grade possible.

But in spite of State Farm’s high ratings, it falls short in a few areas. For example, State Farm’s life insurance policies don’t automatically include any living benefits riders. For comparison, many of the best life insurance companies offer at least two accelerated death benefit riders at no upfront cost.

In addition, State Farm’s term life insurance policies expensive relative to the other term life insurance providers we reviewed. However, you can potentially save money if you bundle a life insurance policy with an auto insurance policy from State Farm.

Read the Full State Farm Life Insurance Review

Best for Whole Life : Nationwide

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
Accepts Credit Cards: Yes

Get A Quote

Pros and Cons

Pros

High coverage limits for no-exam policies
Very few customer complaints
High customer satisfaction ranking
Most policies include three living benefits riders

Cons

Average pricing for term coverage

Why We Chose It

Nationwide includes three living benefits at no upfront cost with most of its life insurance policies and is ranked highly for customer satisfaction. These are two reasons it ranked highly in our review of the best whole life insurance companies.

Overview

There’s a lot to like about Nationwide. First, it’s highly rated by J.D. Power for customer satisfaction, ranking sixth out of 22 life insurance providers for customer satisfaction, just behind State Farm. Nationwide also has an A+ (Superior) financial strength rating from AM Best, and very few customer complaints relative to its size.

Plus, Nationwide offers a generous suite of living benefits: most policies include three living benefits riders for chronic, critical, and terminal illnesses at no upfront cost. These riders let you receive part of the death benefit “early” in the event of a qualifying illness. And while many of our top-rated life insurance companies offer free living benefits riders, only a handful offer as many built-in riders as Nationwide.

Through Nationwide, healthy applicants under age 50 may be able to get up to $5 million in coverage on most life insurance products without an exam, and applicants under age 60 may qualify for up to $1 million in no-exam coverage.

Read the Full Nationwide Life Insurance Review

Best Burial Insurance : Mutual of Omaha

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A+
Accepts Credit Cards: Yes

Get A Quote

Pros and Cons

Pros

Up to $40,000 in burial insurance
Final expense policies issued up to age 85
Free living benefits riders on many policies
Wide selection of riders for customization

Cons

Few policies types offered

Why We Chose It

Mutual of Omaha's final expense policies offer high coverage limits (for final expense policies) and are available to applicants up to age 85.

Overview

Mutual of Omaha’s final expense life insurance policies are available to applicants between 45 and 85 without a medical exam, with a maximum of $40,000 in coverage. Among our best burial life insurance companies, Mutual of Omaha has one of the more generous death benefits for a final expense policy (many cap coverage at or below $30,000). Though you can apply online for up to $25,000 in coverage, you may qualify for more coverage, a better rate, and a terminal illness rider if you call an agent.

If you're a young parent, consider a Mutual of Omaha term policy instead.

Keep in mind that burial insurance policies often have a graded death benefit period for the first two to three years. If you apply online with Mutual of Omaha, your policy will have a two-year graded benefit period—If you pass during this time from natural causes, your beneficiaries will receive a return of premium plus 10%. But if you apply with an agent, you may be able to get a policy without one.

Read the Full Mutual of Omaha Life Insurance Review

Best for Financial Stability : Northwestern Mutual

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A++
Accepts Credit Cards: No

Get A Quote

Pros and Cons

Pros

Highest financial strength rating
Good customer satisfaction score
Very few customer complaints
Whole life insurance with dividends
No-medical-exam coverage available

Cons

Can't apply without an agent
Minimal information on website

Why We Chose It

Northwestern Mutual is a financially stable behemoth of an insurance company. It's the largest life insurer in the country and has an A++ (Superior) financial strength rating from AM Best, an Aaa rating from Moody's, and an AAA rating from Fitch. These are the highest financial strength ratings each agency assigns.

Overview

Northwestern Mutual has a solid customer satisfaction rating. In J.D. Power’s 2022 U.S. Individual Life Insurance Study, it took fourth place out of 21 providers.

In terms of coverage, Northwestern Mutual offers a range of policy types, including dividend-paying whole life insurance. In fact, it's paid dividends to eligible policyholders for the past 150 years. This along with its superior financial strength also makes it a top pick for best whole life insurance companies. Plus, some healthy applicants can apply for no-exam life insurance for up to $1 million in coverage.

The main drawback is a lack of transparency on Northwestern Mutual's website. If you want policy details, you'll need to call to speak to an agent.

Read the Full Northwestern Mutual Life Insurance Review

Best for Older Parents : New York Life

AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations. A++
Accepts Credit Cards: No

Get A Quote

Pros and Cons

Pros

Whole life policies issued up to age 90
A++ (Superior) financial strength rating
Strong dividend history
Riders available for customization

Cons

Maximum term lengths of 20 years
No online quotes or application

Why We Chose It

New York Life is an excellent choice for older parents. The company issues term life policies to applicants up to 75 years old, and whole life policies up to age 90.

Overview

New York Life has been paying eligible policyholders dividends for the past 168 years and has an A++ (Superior) financial strength rating from AM Best.

You can customize coverage with a wide range of policy types and riders, including accelerated benefit riders if you experience a critical, chronic, or terminal illness. But New York Life doesn’t offer online quotes for any of its policies, so you’ll need to work with an agent if you want to get a price estimate or apply.

Read the Full New York Life Insurance Review

	Best For	AM Best Rating AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations.	Term Life Sample Cost	Policy Types	Accepts Credit Cards		Reset All
Protective	Best Overall	A	$22.92/month	Indexed Universal (IUL), Term, Universal (UL), Variable Universal (VUL), Whole	Yes	Get A Quote	Hide, not for me
State Farm Life Insurance	Best for Customer Satisfaction	A++	$35.24/month	Final Expense, Term, Universal (UL), Whole	Yes	Get A Quote	Hide, not for me
Nationwide	Best for Whole Life	A+	$26.25/month	Final Expense, Indexed Universal (IUL), Term, Universal (UL), Variable Universal (VUL), Whole	Yes	Get A Quote	Hide, not for me
Mutual of Omaha	Best Burial Insurance	A+	$28.38/month	Final Expense, Indexed Universal (IUL), Term, Universal (UL)	Yes	Get A Quote	Hide, not for me
Northwestern Mutual	Best for Financial Stability	A++	N/A	Term, Universal (UL), Variable Universal (VUL), Whole	No	Get A Quote	Hide, not for me
New York Life	Best for Older Parents	A++	N/A	Term, Universal (UL), Variable Universal (VUL), Whole	No	Get A Quote	Hide, not for me

Final Verdict

Whether you're searching for your own life insurance policy to cover your family or looking at life insurance for a parent, the companies above are a good place to start. To narrow it down, it's helpful to consider your personal circumstances. Are you young, in excellent health, and looking for a cheap policy that last around 30 years? Check out Protective. On the other hand, if you're older, in poor health, and need permanent coverage, one of Mutual of Omaha's final expense policies is likely a better fit. Or, if you're looking for a permanent policy that pays dividends, consider Northwestern Mutual and New York Life. But don't forget Nationwide, which offers a wide range of options plus benefits for chronic, critical, and terminal illnesses. And if you already insure with State Farm, check your discount by bundling life insurance with your existing insurance policy.

What Is Life Insurance?

More Ratings of Top Life Insurance Companies

Frequently Asked Questions

Can I Buy Life Insurance for My Parents?

Yes. The owner of the life insurance policy and the insured individual can be two different people. But you'll need your parent's consent. They will need to sign the application and undergo a medical exam, if required. You may also have to demonstrate that you have an insurable interest in them. This means you would suffer financially or emotionally as a result of their death. Parents often fall into the latter category.
What Does Life Insurance for Parents Cost?

The cost of life insurance for parents depends on a variety of factors, including tobacco use, health, occupation, the type of policy, and the policy’s death benefit. For a healthy 25 year-old, we found monthly premiums for a 30-year $250,000 term policy to range from as low as around $15 to over $30, depending on the company and whether the policy was convertible. Life insurance is cheaper the younger and healthier you are, and term life insurance policies are cheaper than permanent policies.
Why Should Parents Buy Life Insurance?

Generally speaking, parents should buy life insurance as a way to provide financially for their children if they happen to pass away while their children still depend on them. If you're buying a policy for your parents because they're aging, life insurance is a good way to ensure you have the funds to cover the cost of your parents' funerals and burials.
What Does Life Insurance for Parents Include or Exclude?

Life insurance policies for parents tend to include all the same features someone without kids would have. For term policies, you'll usually have a monthly premium, a death benefit, and the option to add riders to your policy that can cover specific situations.
How Much Life Insurance Should You Have as a Parent?

It depends. There are several popular formulas for calculating how much life insurance you should have. A few include multiplying your income, then adding the cost of sending each of your kids to college; adding up the cost of your debt, income, mortgage, and your kids' education; and getting a policy that can cover the equivalent of 30 times your income if you're 18-40, 20 times your income if you're 41-50, and 15 times your income if you're 51-60.
What Life Insurance Is Best for New Parents?

In general, term life insurance is a good choice for new parents who are younger than 40 because premiums are reasonable and you can typically obtain a good amount of coverage. After 40, it may benefit you to get a whole life or universal life insurance policy. Premiums will be higher, but, unlike term policies, which usually last 30 years or less, a whole life policy covers you your entire life.

Methodology

In order to compile our list of the best life insurance companies, we developed a comprehensive life insurance methodology. We started off by researching what consumers want from life insurance companies, and for that, we looked to third-party consumer studies, including J.D. Power’s 2021 U.S. Life Insurance New Business Study and the 2021 Insurance Barometer Study, by Life Happens and LIMRA.

With those findings in mind, we gathered more than 50 data points on 91 life insurance companies, including ratings for financial strength, customer satisfaction, and customer complaints, as well as information about years in business, cost, online tools, no-exam options, policy types and features, and available riders. Our review process gave preference to companies with superior financial stability, few customer complaints, and a robust suite of products and resources. In particular, we valued online quoting and application tools, transparent pricing, and no-exam policy options. Companies received ratings boosts if customer service was accessible via features like live chat. We compared individual offerings between companies by delving deeper into product specifics, including maximum coverage amounts, maximum issue ages, included riders, and product-specific application processes. We used this research to determine the best companies for different products and consumer groups, including term life insurance and the best life insurance for parents.