Debts. You may be held responsible for outstanding debts left behind by your parents, such as credit card bills or mortgage repayments.
Health care. Your parents may receive private health care and bills may be left unpaid at the time of their death. These bills may then fall to you so you may want to ensure they will be covered by life insurance money.
Funeral expenses. The average cost of a funeral in the UK today is more than £4,000. A life insurance policy could help mean you are not hit by a hefty funeral bill after the death of a parent.
Tax. In some cases, life insurance on your parents can be used for inheritance tax planning purposes.
Another reason you may want to take out life insurance for your parents is because you rely on them for income. In order to get a policy in place in this case, you would need to prove insurable interest.