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How Long Can You Stay On Your Parent's Life Insurance?


If you're on your parent's life insurance policy, you should be able to stay on it for as long as it's active, but each life insurance policy can work differently. You'll receive these benefits when you're named as the beneficiary of your parent's life insurance policy unless your parent changes the beneficiary before they pass.

Some insurance policies are considered family policies, allowing multiple people to receive these benefits. Multiple policies can be used as family policies, which include term life policies to whole life policies. To better understand how long you can remain on your parent's life insurance policy, you should first know how these policies work, detailed in the following.

Family Life Insurance Policies

Family life insurance allows multiple family members to be covered with the same policy. With this policy, the death benefit can be used to cover funeral expenses while also helping family members replace lost income or cover debts.

Term life insurance: If your parents have a term life insurance policy, you and your family members will be covered for a set period of time. This time period typically ranges from 10-30 years. In this situation, you would be able to stay on your parent's insurance policy until the term is over. The policy will likely expire if a family member doesn't pass away during the term.

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Whole life insurance: Your parent's whole life insurance will be active as long as the insurance premiums are paid. You should know that these policies are usually more expensive than the alternative. One key benefit with a whole life insurance policy is that it may offer a cash value account, which gains a certain amount of interest while the policy is ongoing. It's possible for these funds to be withdrawn while you or other family members are still alive.

Joint Life Insurance Policies

Although not used as often as family life insurance policies, your parents may have applied for a joint life insurance policy. This type of insurance is available as permanent life insurance, meaning it will last as long as your parent pays the monthly premiums. These policies cover multiple individuals. Keep in mind that some insurers will offer temporary joint life insurance policies that expire in 20-30 years.

Advantages of Joint Life Insurance

The main benefit of having joint life insurance is that some probate issues can be resolved with this insurance policy. The process of verifying and underwriting the policy is also less time-consuming, which should lead to more affordable costs if you decide to purchase joint life insurance.

Disadvantages of Joint Life Insurance

If one of the individuals on the policy has health problems, the insurance costs can be higher for the person who is currently healthy. It can take a long time for these benefits to be paid out, which isn't an issue with permanent life insurance policies that offer cash value accounts.

The Bottom Line

If you've been placed on your parent's life insurance policy, you should be able to stay on this policy as long as it's active. The total duration depends on which policy your parent has. While universal life and whole life insurance policies last for as long as premiums are paid, term life insurance policies will eventually expire. If you want your own life insurance policy, call Prudential today to find out which policies you qualify for.

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