Your parents gave so much to you for your entire life. Now, they are the ones in need of care. In their advanced age, maybe they can’t drive, climb stairs, or cook. They may have suffered some severe health crises and now they are unable to perform daily tasks. They may require around-the-clock care. This is where you step in and become their emotional support and most likely their financial support, as well. This is actually a common situation shared by many adults. It’s important to have a financial plan in place that takes care of your parents, especially if something tragic should happen to you.
As parents move into old age, they may become dependent upon your income for their care. They may have begun to outlive their savings or it may have been used to cover substantial medical or rehabilitation costs. Consider what would happen to them if your income suddenly disappeared. Would there be enough money to pay for their care?
Your death may mean that your elderly parent may need another place to stay or another person to care for them. Who would this responsibility fall to? Would they be able to provide housing for them? Will they be able to adequately care for an elderly person? Your death may mean that your parent will need to move into a long-term care facility. Maybe they are already living there and you have been the one paying for it. They may require expensive professional services as they continue to age. Who will be able to take on this cost?
You can protect your parent financially by getting life insurance on yourself and naming them as the beneficiary. You may only need this coverage for the remainder of your parent’s life. This ensures that your parent will continue to receive the care they deserve in their old age, even after you are gone.