Yes, you can purchase life insurance on your parents.

Many children buy life insurance on their parents to help pay for final expenses; such as, funeral and burial costs which may add up to as much as $7,500 or more per parent. A study of Funeral Director's indicates the average cost of a funeral to be around $7,750.

In order for someone to buy life insurance on another person there must exist insurable interest. This means you either rely on the person you want to insure for money, or you would suffer financially if the person you want to insure were to die.

Insurable interest does exist between parents and their children, especially since you may have to pay for the cost of burial for your folks.

Learn more about how to buy life insurance for your parents.