Buying Insurance For Parent

Many people are finding themselves caring, at some level, for both children and parents. This sandwich generation will likely find their finances stretched thin through the coronavirus pandemic. With seniors reportedly at a higher risk of dying from this coronavirus, you might be wondering if you should purchase life insurance on your parents?

Over the years, many have been responsible for financially supporting their parents. With many Malaysian unable to save at all for retirement, supporting their parents will have a dire effect on their standard of living in retirement. Some enterprising children have purchased life insurance policies on their parents. To be clear, this is not suggestion to some get rich quick scheme where you hope your parents get ill and pass away from something like COVID-19. Those individuals are just looking for a way to recoup all of the money they have given their parents over the years.

Buying Life Insurance During the Coronavirus Pandemic - If you purchase a life insurance policy today, there will likely limit benefits if you were to pass away from COVID-19 in the near future. Some companies are pulling certain products from the market. At the same time, others are making it easier to get a new life insurance policy while social distancing. Those companies are helping applicants avoid in-person medical exams and allowing applications to be completed online.

Considering Permanent Policy - You may want to consider buying a policy like this if you expect one, or both, of your parents won't be able to afford long-term care, and you think you may get stuck subsidizing this significant expense.

For those already providing financial support for their parents, this is a way to ensure your financial future as well. Think of it this way, if you buy a life insurance policy with long-term care coverage, you know a certain amount of their care will be covered, if they need it. If they end up not needing Long Term Care policy, you will receive a death benefit to help repay the money you have given them throughout the years. You can use this money to help top off your retirement accounts.

Survivor Policy - IYour parent should consider buying life insurance to cover the lost pension and Social Security income. If your parent can't afford coverage, it can make sense for a child (or children) to plan ahead and purchase the coverage to offer some peace of mind and financial security for the future.

Types Of Policy - For most people buying coverage on their parents, permanent life insurance will be the way to go. Premiums are likely to be more expensive upfront. Unlike term insurance, permanent life insurance won't lapse as long as you pay the appropriate premiums.