Can I Buy Final Expense Insurance for a Parent in Another State?

Yes you can buy final expense insurance for a parent in another state by doing a three way call with your parent, your self and an independent insurance broker for a remote application as long as there is insurable interest. The broker(like us) must be licensed in state of the insured at the time of application. In addition to this the life insurance company selected for the final expense coverage must be active in the insured’s state. Your parent must be on the call with you(cannot purchase a policy on your parent without their knowledge) and the broker at the time of application to provide answers to health questions if any(guaranteed issue policies do not have health questions) and for remote voice, paper or electronically signed signature. You cannot sign or provide answers to health questions for them on the application even if you have Power of Attorney.

Buying Final Expense Insurance for Parents Living in Another State

You can buy final expense insurance for your parent in another state other than your own but the insurance company must be there also. In addition to this the life insurance agent/broker you work with must also be licensed in that state.

Example:

Your mother lives in Texas and you live in Florida. The life insurance company carrying final expense coverage you want is in your state but not in Texas. You will not be able to purchase from that company for Texas since they do not do business in that state.

Same principle goes when working with a broker. If you work with a life insurance broker licensed in Texas but not Florida they cannot get your mother a policy. The insurance agent/agency would have to get an out of state license or recommend you to an agency that is licensed in that state.

Be sure to check out our article on Does Burial Insurance Work out of State to learn more about the logistics.

Insurable Interest

There must also be insurable(a reason you are purchasing coverage for your parents). This is simple as most children insuring their parents have insurable interest due to the burial expenses falling on them. This is why people buy final expense insurance for a parent in another state.

It is smart and provides a quick cash payout at the time of death for funeral expenses.

So if this is your pain point then you have an insurable interest in your parents. Now when it comes to purchasing the policy you must have your parent present with you on the call for remote application. This is crucial as your parent needs to answer the health questions for the policy on a recorded line.

This is for compliance purposes, in addition to this your parent will have to do their own policy signature. There are several different ways to do a remote policy signature.

Signature Methods

• Voice Signature: The agent reads or plays a recorded disclaimer to your parent & you in most cases. Upon completing the disclaimer your parent must answer with a clear “yes” to confirm their voice signature. You would typically do a payor/policy owner signature. Different carriers will have different options.
• Electronic Signature: The agent will typically send this via email or text message(depending on carrier). You and your parent would electronically sign the signatures concerning insured, payor(if you plan to pay the premium)/policy owner signatures.
• Paper Signature: This is the slowest method, your parents application would be mailed or faxed out to them for signature then yourself. Your parent would sign their name with a pen for the insured’s signature then you would fill out the policy owner and payor sections(if you plan to pay the premium).

Please note that if you plan on having your parent be the policy owner and payor. Then you do not need to sign anything. It would be all one signature by your parent alone for the application.

Underwriting

Your parent would have to answer the health questions at the time of the application. You cannot answer the health questions for them. Now if they are in extremely poor and applying for guaranteed issue coverage there are no health questions.

State Restrictions When You Buy Final Expense Insurance for Parents Out of State

As we mentioned before some carriers will not be available in every state. If you have a specific carrier in mind be prepared to abandon that idea and accept the recommendation from the agent you are working with. In addition to this some state rules will limit the amount of maximum coverage you can get on a person.

The good news is the general rule for burial is getting between $15,000 – $20,000 in coverage which is typically easy to find in most states.

Free Look Periods

Different states offer different free look periods. Some may offer a 30-day free look period while others may offer a 10-day free look. This is a period where you are allowed to look over your policy upon receipt of it.

If for any reason you are un happy with the coverage you may cancel it for a full refund of the first months premium.

Work With Us to Buy Final Expense Insurance a Parent in Another State

If you are looking to buy final expense insurance for your parent in another state use our quote form. To the right of this page you can use our tool to get in contact with us and look at your parents state. If you select the state your parent is in on our form it will show you our carriers active in that state with pricing.

One of our agents will get in touch with you and made a recommendation based on your parents health. They can guide you through the signature process. Just be ready to bring your parent on a three way call with us to get coverage today!