Buying Life Insurance for Your Parents in Canada

3 minutes can save you hundreds. Enter your postal code below and join thousands of Canadians saving on insurance.

Secure. No Spam. No Fees.

Why You Can Trust MyChoice

MyChoice serves as an independent intermediary between you, financial institutions and licensed professionals without any additional charge to our users. In the interest of transparency, we disclose that we partner with some of the providers we write about – we also list many financial services without any financial gain. MyChoice does not operate a financial institution or brokerage and to ensure accuracy, our content is reviewed by licensed professionals. Our unique position means that we hold no recurring stake in your policy, ensuring our mission to help Canadians make better financial decisions is free of bias or discrimination. 

Article Contents
Picture of By <span>Matthew Roberts</span>
By Matthew Roberts

Updated on March 21, 2024

Visit author page
Picture of By <span>Matthew Roberts</span>
By Matthew Roberts

Updated March 21, 2024

Visit author page

3 minute read

Article Contents

Purchasing life insurance for your parents is a significant step towards ensuring their legacy and providing financial security for your family. It’s a process that requires careful consideration, open communication, and an understanding of their needs and the available options.

Key Considerations Before You Buy Life Insurance for Your Parents:

  • Consent is Key: Always start with obtaining your parents’ consent. It’s not just about legality, it’s about respect and mutual understanding.
  • Understand the Options: Familiarize yourself with the different types of life insurance available, such as term, permanent, and burial insurance, to determine which best suits your parents’ needs.
  • Assess Financial Impact: Consider the policy’s purpose—whether it’s to cover funeral expenses, settle debts, or provide a financial legacy. Tailor the coverage to address these specific needs.
  • Communicate Openly: Approach the topic with empathy and patience. Understand their hesitations and work together to find a solution that benefits everyone.
  • Seek Professional Advice: Don’t hesitate to consult with insurance professionals or financial advisors. They can offer valuable insights and help navigate the complexities of life insurance policies.

Can You Buy Life Insurance for Your Parents?

The answer is yes, you absolutely can purchase life insurance for your parents, but it requires their consent and some other conditions. The process involves assessing their health, financial needs, and the policy’s purpose, whether to cover funeral expenses, settle debts, or provide a financial legacy.

Accidental Deaths Are on The Rise Among Senior Population in Canada

The data from Statistics Canada suggests an increasing trend in accidental deaths among the senior population in Canada from 2019 to 2022.

YearYoY % Increase
YoY % Increase
YoY % Increase

Pros and Cons of Buying Life Insurance for Your Parents (Infographic)

The below infographic shows the main reasons for and against buying life insurance for your parents.

Types of Life Insurance Coverages for Your Parents

This table offers a streamlined overview of the various life insurance coverage options available when considering purchasing a policy for your parents in Canada. It’s designed to help you understand the differences between each type of policy, who they’re best suited for, and key considerations to keep in mind.

DescriptionBest ForConsiderations
Term Life
Provides coverage for a specific
period, such as 10 to 30 years.
Pays out a death benefit if the
insured passes away during the
coverage needs,
such as covering a
mortgage or
specific debts.
Most affordable option, but
no cash value accumulation.
Consider the term length
Permanent Life
Offers lifelong coverage with
premiums that can build cash
value over time. Includes whole
and universal life insurance
Long-term financial
planning, legacy
creation, and covering
final expenses.
More expensive than term life
but provides coverage for life.
Cash value can be used as a
loan if needed.
Burial Insurance
(Final Expense
More expensive than term life
but provides coverage for life.
The cash value can be used as a
loan if needed.
Covering funeral costs
and minor debts left
Lower coverage amounts,
usually between $5,000 to
$25,000. Easier to qualify
for seniors.
Joint Life
Covers both parents under one
policy. Pays out on the first-to-
die or second-to-die basis,
depending on the policy type.
Couples looking for a
cost-effective way to
provide mutual
Can be more affordable than
two separate policies. Important
to consider when the benefit
payout is most needed.
Offers coverage without the
need for a medical exam,
targeting those with
preexisting conditions or
advanced age.
Parents who may not
qualify for traditional
insurance due to
health issues.
Higher premiums for lower
coverage amounts. No
medical exam required.

Steps to Buying Life Insurance for Your Parents (Infographic)

Below is the infographic explaining the best course of action if you decide to get life insurance for your parents.

Steps to buying life insurance for your parants

Tips for Discussing Life and Financial Protection with Elderly Parents

Many elderly parents may resist assistance, particularly from their adult children, often due to deeply personal reasons. However, it is on you to discover the most effective strategy to gently guide them toward understanding how your proposed support is designed solely for their benefit. Here are some tips that could help you find the right approach:

  • Understanding Their Perspective
    • Show Empathy: Understand their fears and losses related to aging.
    • Listen Actively: Hear their concerns without rushing to solve them.
  • Effective Communication
    • Offer Choices: Present life insurance as an option, not a must-do.
    • Use Positive Language: Focus on the benefits like security and peace of mind.
    • Be Respectful: Approach the topic with patience and without talking down to them.
  • Involving Them in the Process
    • Encourage Their Input: Let them share their preferences and concerns.
    • Start Early: Talk about financial planning before it becomes urgent.
    • Give Options: Show different life insurance plans and financial strategies.
  • Overcoming Possible Resistance
    • Understand Their Hesitation: Identify the reasons behind their reluctance.
    • Reframe the Discussion: Shift focus to legacy and family security.
    • Consult Experts: Consider getting advice from financial advisors or insurance professionals.
  • Continuous Support
    • Reassure Them: Emphasize your intention to protect their wishes and security.
    • Be Patient: Accept that multiple discussions may be necessary.
    • Show Unconditional Love: Support them regardless of their decisions on life insurance.

Key Advice From MyChoice

Recognizing that life insurance serves as both a gesture of care and a strategic financial safeguard, we advocate for a process rooted in mutual respect and informed decision-making. Below are crucial insurance-related insights to guide you:

Assessing the Right Coverage:

Given the increase in accidental deaths among seniors, selecting the appropriate life insurance coverage is critical.

Customized Solutions:

Whether opting for term or permanent insurance or considering burial insurance for end-of-life expenses, tailor the policy to fit your parents’ unique needs and financial landscape, ensuring comprehensive protection and peace of mind.

Congratulations! You made it to the end!

Now, here is the easy part: complete your quote in under 2 minutes

Discover More About

Learn about the concept of life insurance trusts, their utility, structure, and the strategic considerations involved in their establishment.
Learn about the details of cremation costs in Ontario, provincial differences across Canada, and whether life insurance can help cover the expenses.
Dive deep into the circumstances where life insurance claims in Canada may be denied. Read on to learn more.