It is a general notion that people get relieved of their responsibilities as they age. However, this may not be true in today’s scenario. With high disposable income, there comes the high cost of living too. Even the elderly people, who get retired from their jobs, often look for some alternate work opportunities.
They want to ensure a better future for their younger ones by contributing to the finances of the family. Life insurance for elderly parents is a good option for such people who want to be self-dependent and strengthen the financial position of their family even after they leave the world.
Why Elderly Parents Need Life Insurance?
As a responsible child, it is your duty to make sure that your parents are financially secured in their older ages. At their older ages, they retire from work.
However, because of health issues often it becomes really difficult to get a policy for elderly. Hence, we always refer to guaranteed life insurance to our clients which doesn’t require any medical tests and has no waiting period.
Earning money is not possible for them and they don’t want to become a burden for the family. A life insurance policy may give them the mental satisfaction that they have enough money left for the family.
Funeral costs are accelerating very fast and you might have to deal with these costs if any unexpected happens. At that sad moment of life, it is really difficult to fight with financial issues. However, a life policy can cover all the funeral expenses.
Benefits of Life Insurance for Elderly Parents
There are various benefits associated with these policies that give them a strong reason to invest in time in these policies.
The Unpredictability of Life
Life is always uncertain. You can’t predict what will happen the next moment itself. In such scenario, when life insurance companies give you benefit of asserting the financial condition of those who is survived by a loving family member, there is no harm in it.
Especially when it comes to elderly people, who know that they will leave the world sooner than others, they are more anxious about the well-being of their younger ones. Life insurance is a hope for them, with its help they can stay assured that their family will keep on doing well even after they will not be here to look after their children.
Taking Care of Medical and Burial Expenses
At this stage of life when people cross 60 years of age, the health tends to take a back seat. Their earnings also get reduced after retirement. In such condition, the elderly parents get dependent on their children to meet their medical expenses over bad health. There can be a number of diseases that they have to deal with such as heart issues, overweight, hearing problems and lack of vision etc.
Owning life insurance coverage can give them a sense of dignity that even though they are a financial liability on their family, they will be able to pay for their own medical expenses and burial expenses through the life insurance remuneration after their death.
Finishing the Incomplete Debts
Often we take loans for several reasons in our lifetime. If there are any unpaid loans in the name of elderly people, they can plan to buy a life insurance policy that will pay off their debt in a lump sum after their demise. Until then they can keep on paying the monthly EMIs from their post-retirement income. In this way, they will not become a liability on their children and will be able to wave off their big financial worries.
To Always Be Remembered with Dignity
As children, our parents always fulfill all our needs and demands. But when they grow old and retire, it is not possible for them to do so. Instead, their pension income is mostly just enough for their survival and minimal expenses.
While it seems fine with the children, some parents always want to be able to be in a position to give to their children. It is understandable that someone who has earned their whole life does not want to depend on anyone in the last stage of life. Such policies enable them to restore their status of a “giver” in the family.
With the help of these policies, they make sure that they have provided enough to their offsprings and the generations to come will remember them with great respect and honor.
Deciding the Coverage Amount
Finding out the coverage amount is an essential decision before buying coverage though it is a bit tricky. The size of the coverage is the determining factor for the monthly premium. You may want to include everything in your coverage but that will be very difficult to pay. It is wise to choose only the most essential expenses in your coverage otherwise you will find a huge amount and extra monthly costs. However, you must include funeral cost and any debts you have.
What Options are Available for Elderly Parents?
It totally depends on the age of your parents. Term life insurance is available for seniors up to 70 years. Term plans are available in between the range of 5 to 20 years. However, you may not be able to cover more than $250k with a term plan.
Whole life insurance policy is available for seniors over 80 years. As I said earlier in my writing after a certain age people do not need term life policies as it will be a better choice for you to get a permanent insurance policy. Why choose permanent policies over term policies?
It is quite obvious that permanent policies have more rules and regulation than temporary policies. However, the outcomes are also different. Term plan is mainly taken because the person wants to secure their family income and future for a short period of time. It is not an ideal option for an elderly person. The main role of term policies does not suitable for a senior person.
On the other hand, a senior person may want that, after his or her death, their children get some money to lead a good life or purchase a good thing. Permanent policies give you cash value on your insurance. But it takes time to build like 10 to 15 years.
In some cases, it may take 20 years to build up the cash value. In that case, permanent insurance is a better option. As you can see term life is for mostly 10 to 20 years while you can get a whole life insurance with maximum cash value and that will provide some financial benefit to your children or the beneficiary you select.
There are some other benefits as well in this insurance. Like, the premium of whole life insurance is quite gettable or reasonable compared to term insurance. Even though there is a very small chance of getting a term policy at that age and you will find the premium very high.
With age, whole life insurance premium remains the same, there is a little chance that the premium will raise in any condition. But just do not think it will never rise as a lot of us has this misconception that the premium will never rise from the amount we agreed on. Mainly it rises if you add some new demand on the existing insurance policy.
But there is some positive side of term life insurance also like you can terminate it when you want. Permanent life insurance does not give you these kinds of chance. A permanent insurance policy is not easily achievable. There are a lot of checking of paper and other things.
Age, good health condition, and clean financial statement are very much necessary for this policy. They will make sure that you will go through some medical check-up. Your previous medical reports or history may also be checked but it depends on the underwriter. Take all these points in your mind before going for the permanent insurance policy. It is very profitable for seniors, but always remember good thing comes with some hard work to be done.
How to Get an Affordable Plan in Shortest Possible Time?
If you can decide the coverage amount, you are ready to search for your plan. However, it may take some time but you should not be hopeless. Apply for quotes from top companies mentioning your coverage amount and other details. You should compare the rates from as many as companies possible. After checking all the rates, you can find out easily which one is appropriate for you.