There are many ads out today on health and life insurance. How do you sift through all the information? How do you make wise decisions for yourself and how do you find out if your aging parents have enough finances to take care of final expenses?
No one likes to think about dying. We avoid the topic like the plague, but then each time one of those commercials enters your TV space, you are reminded you need to think about it.
It is better to deal with all of that before you need to deal with the issue regarding your aging parent.
As I’ve stated over and over in other blog posts, you need to have a conversation with your parents!
I know I keep saying you need to talk, but it is true. I am not saying this from the perspective of a 30 something, but someone who is approaching the senior age. Not once, have my grown children brought up the subject of ‘what if’. But I want my children to know my wishes and ask the questions…so I am trying to be pro-active in supplying the information they will need, even if they don’t ask.
Here is a list of some of the things you need to know about your parent’s finances:
- The location of their will (a subject for a later blog)
- Information regarding their bank accounts
- Information regarding their credit cards
- Their passwords
- Life insurance coverage
- What investments do they have?
At least one child should have this information for the eventual time it will be needed.
You may also need to have one child as the power of attorney if there are physical issues that may cause the parent the inability to handle things on their own.
Life is short and while it is not comfortable to discuss; your parents are going to pass from this life.
- What are their wishes?
- Who will pay for the funeral?
- Do they have LIFE INSURANCE?
- Do they have enough in accounts that Life Insurance isn’t necessary?
This is very important to know NOW.
(For that matter, do YOU have life insurance?) We are not guaranteed tomorrow. Knowing that I am insured if anything were to happen, along with the security that my children won’t be left to take care of final expenses and unpaid bills allows me to sleep better at night.
So let’s talk (very) briefly about life insurance. And please note, I am not a licensed insurance agent and do not represent any company; simply my own opinion.
There are several options out there; some good and some that are a waste of money, according to financial experts. Namely, Guaranteed Issue, Whole life or Travel Insurance along with Insurance for children are not necessary (invest in their college fund, instead).
Term Insurance or life insurance that is specific to end of life expenses may be a good choice for your parents.
Whatever type you choose, find a policy that will take care of whatever is needed!
The cost and amount of life insurance needed will depend on factors only your family knows. At the very least, your aging parents need enough to handle the cost of a funeral and extra to pay off any debt.
Do the research since there are many companies that provide insurance; and again I am not an agent. Often times a financial advisor can also assist with what may be best.
The most important thing is to be prepared for with the insurance needs of aging parents.