Life insurance consumer tips: Life insurance on caregivers, Pt. 2
By Steven Kobrin
Steven H. Kobrin, LUTCF
Editor's note: This is the second in a series of articles to help you explain to clients how life insurance provides a way to ensure the financial security of a special needs person after their caregiver passes. The first in the series focused on life insurance for a caregiver of a special needs child. This article focuses on life insurance on the caregiver of an elderly parent.
We live in remarkable times, when advances in medical care — and increased awareness of the importance of a healthy lifestyle — have given people a much healthier and longer life span, far exceeding prior generations. It has become almost commonplace for people to exceed age 100. Yet many people still become infirm in their later years, and they may need assistance with the activities of daily living, such as dressing, bathing, and so on. In a society that values life in all its stages, life insurance products can help us provide the necessary ongoing care for our elderly parents.
Caring for elderly parents
Adult children sometimes take on the role of primary caregiver, even managing the parents' household. Even when the adult child's own family and career obligations will not allow them to directly care for the parent, they may still get the job done by taking on the financial responsibility of paying qualified eldercare specialists, who then provide the care.
But what happens when the child predeceases the parent?
For any parent, such a thing is tragic and unthinkable. There is sadness and depression, denial and anger, fear and shame and guilt. For the parent who is dependent upon the child, it is especially shattering. This is the time, of all times, when an elderly parent needs uninterrupted care.
Life insurance on the life of the caregiver — in this case, the adult child — can supply the funding necessary to continue the ongoing care quickly.
Here are some guidelines to follow, if you are planning to purchase life insurance with the goal of caring for an elderly parent.
1. Consult with your elder care advisor and attorney. This can be a delicate issue, and professional counsel will be key in helping your family implement such a plan.
2. Choose a broker who is knowledgeable about the impaired risk market. After all, caregivers themselves can have health issues, too.
3. Be sure to get prequalified for coverage. In this way, you can be sure you will get the best value for the premium dollar.