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.

Why is life insurance important when you support aging parents?

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.

What type of life insurance should I get?
This is a great way to protect your family for a specific amount of time. This type of insurance pays a guaranteed benefit in the event of the insured’s death during a specified term. Typical term lengths could be 10, 20, or 30 years. It comes with an end date, but it is also the more affordable option and the easiest to understand. You might purchase term life insurance to help supplement your income until retirement, until your kids are grown, or to make sure the mortgage gets paid in full.
 
Learn about Term Life Insurance
This lasts you for the rest of your life, unlike term insurance. While it can be more expensive, it has several attractive advantages. This type of insurance comes with fixed premiums, meaning your monthly payment is locked in and will not increase as you age. Your policy will also build cash value over time that you can borrow against tax-free to help you fund your retirement, for instance, or your child’s college fund. Consumers appreciate the benefit of forced savings, as well. And as long as you’re paying the premium, you’re covered if you die tomorrow or you live to be a hundred and twenty.
 
Learn about Permanent Life Insurance
This is often considered to be the best of both worlds. This type of life insurance gives you the opportunity to have life insurance coverage and also save money for the future. It builds cash value over time much like permanent life insurance does, and you can take out a policy loan if needed. The premiums are flexible, meaning you can change the existing policy to make it more affordable while keeping it in force and continuing to build cash value. And as long as you’re paying the premium, you’re covered for the remainder of your life.
 
Learn about Universal Life Insurance

 

I’m ready to start protecting my family’s financial future.

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