For years, your parents were responsible for taking care of you. As they get older, sometimes it’s your turn to take care of them.
Many older adults don’t have enough savings to cover their expenses, from unexpected medical bills to rising housing costs.
That means your parents might need you to step in at some point to support them financially. Whether they move into your home or you pay for their nursing home bills, the costs can add up. One solution? Life insurance.
If you’re wondering, “Can I get life insurance on my parents?,” the answer is yes. As long as they agree to it, taking out a life insurance policy for parents can provide you with a cash payout to cover the costs of their care after their death. No parent wants to be a financial burden, and life insurance gives you both peace of mind that their needs are covered. Some policies also provide a partial payout during a parent’s lifetime to help with immediate expenses.
Life insurance provides a financial cushion to help loved ones cover expenses after a death. You might already have your own policy to cover your family in a worst-case scenario – and if you have a partner or kids, life insurance is a must-have.
Beyond purchasing your own policy, sometimes it makes financial sense to buy coverage for someone else. When the insured person dies, the policy pays a lump sum of cash that you can spend on whatever you choose, like paying day-to-day expenses, covering debts, or saving for the future. People often buy life insurance for parents to cover common situations like:
1. Paying for Your Parents’ Care As They Age.
Caregiving for an older parent is incredibly thoughtful, and it can also be expensive. You may welcome a parent to come live in your home or pay for residential care once they’re unable to live on their own. In some cases, you might also take time off work to care for a parent who’s sick or needs help with daily tasks. Once they pass, a life insurance payout can help cover these expenses.
2. Covering Health or Other Expenses Now.
A 75-year-old spends about $7,000 annually on medical expenses, and a major illness can mean even bigger bills to pay. Some forms of life insurance come with a cash component you can access while they’re living to help cover hospital bills, at-home care, and more.
3. Paying for a Funeral.
On average, funeral costs start at about $9,000. It’s important to talk with your parents sooner rather than later about their end-of-life wishes, so you have time to plan financially for them. A life insurance policy is a good way to earmark money specifically for their funeral or related costs.
4. Covering Their Debts.
No one wants to pass down an inheritance of debt, but sometimes it’s unavoidable. Life insurance can cover any co-signed debts that could impact your own budget if you’re suddenly responsible for paying them off.
5. Helping Them Carry Out Their Wishes.
A life insurance policy can give your parent a way to leave something behind for you, your children, another loved one, or a charitable cause. You can choose multiple beneficiaries for a life insurance policy, so your parents can carry out a variety of wishes.
Want to know more? Contact one of the insurance professionals at USA Mutual Insurance at 718-285-6500 today or visit our website at www.usamutualins.com