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More and more millennials and middle aged people are living at home with their elderly parents.
In the 21st century, multiple generations of the same family are slowly becoming something of a norm instead of an exception.
- The slowdown of the American economy and the rising costs of quality nursing home care is creating a situation where more adult parents are living out their lives with their adult children.
- There is also a large demographic of adult children who voluntarily move back home to live with their adult parents who want to care for and help look after their elderly parents.
- And more and more, elderly parents without any life insurance are realizing the gravity of the financial burden they would leave behind to their adult children in the event of their passing.
Not all elderly parents have money and a sizable estate to bequeath their children. A lot of elderly parents may own a modest home or rent while living check to check without any assets, saving or life insurance. Retirement saving are being exhausted much faster than expected as people live longer nowadays.
For a myriad of reasons, there is now a fast growing demographic of elderly parents with adult children wrestling with posthumous life decisions that have to made while their elderly parents are still living.
Whether you are elderly parents looking to protect their property and legacy or the adult children of elderly parents who want to help prepare them for their final expenses, you don’t have any more time to lose.
One of the newest and fastest rising forms of life insurance is the life insurance for elderly parents demographic.
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New Financial Realities for Elderly Parents
People are living longer nowadays. There is a large segment of elderly people who would rather live at home than spend their twilight years in a nursing home. The sluggish economy is creating trends where more adult children move back home.
Elderly parents may not want to give up or sell their home and property, even in the face of lessened mobility or the refusal to give up a home for a nursing home.
It is a difficult subject to discuss. Adult children don’t want to talk to their parents about their age or final expense preparations as they get older. Elderly parents may not want to be treated like children by their adult children.
However, time pauses for no person. It is important to openly discuss and make preparations for such matters, no matter how difficult they are to discuss.
New life insurance policies and coverage plans can be designed to serve fast rising demographics or ever-evolving changes in family dynamics.
If you are an adult child who handles the finances and day-to-day care of elderly parents, you can inquire about, “insurable interest,” policies with an insurance agent.
Insurable interest means that you want to buy life insurance so that as the adult child, you will not be burdened with debt, outstanding payments and final expense costs after the passing of your elderly parents.
This kind of insurance is more appropriate for elderly parents who don’t have enough or any life insurance and who need to prepare for their final expenses or decide how their estate will be taken care of.
An adult child of elderly parents or enabled individual with power of attorney privileges can initiate an application process or pre-application interview for elderly parents.
But the elderly parents, the ones whom the policy will be made out for, have to be a part of the process, answer questions, take medical exams and sign off on the policy. Life insurance policies cannot be taken out on anyone without their knowledge, cooperation, engagement and agreement.
There are many reasons why acquiring life insurance for elderly parents makes sense:
- The average annual cost to house an elderly parent in a nursing home begins at over $82,000 a year.
- At-home visiting nurses and doctors can cost $40,000 a year in starting costs.
- The family home and estate is a legacy that is hard to give up.
- The family home may be the only valuable thing owned by elderly parents who are wont to give it up. Especially just to move into a nursing home
- Or it may be a case where an elderly couple of adult children are still renting a long held apartment with meager assets, no savings and living check to check. In a situation like this, the sudden death of one or both elderly parents can create a whirlwind of financial problems.
Whatever the reason, there are several kinds of life insurance products to aid elderly parents in need.
Survivorship Guaranteed Universal Life Insurance
- Survivorship Guaranteed Universal Life Insurance is a form of universal life insurance, which is in itself a form of whole life insurance.
- This form of life insurance provides 100 to 120 years of policy coverage protection, depending on plan, coverage and insurance company.
- Both elderly parents are can be insured against the passing of the other. Death benefit payments are paid out to one parent if the other passes away.
- Survivorship guaranteed universal life insurance is much more affordable than taking out life insurance policies separately for each parent.
- This coverage can protect elderly parents who own a small business or who have legacy and estate matters they want to tidy up.
- Both elderly parents can be covered under this plan even if one elderly parent is uninsurable for any reason.
- This kind of life insurance policy is known to lapse suddenly if you do not keep current with premium payments. Invest in a,” no-lapse,” version of this policy.
- Death benefit payments are guaranteed just as long as you regularly pay your premium.
Guaranteed Issue Life Insurance
- Guaranteed issue life insurance is a simplified form of whole life insurance.
- Depending on the version you apply for, it can be much more expensive or about just as expensive to pay for as whole life insurance. The price you pay for premium will depend on what you want to get out of the policy.
- Suitable brand of coverage for elderly parents with health problems or grappling with declining health.
- This is a simplified or blanket form of life insurance coverage for people who can’t get life insurance or whose medical problems bar them from getting such.
- Depending on the upper age limit imposed by the insurance company, almost everyone who applies for this kind of coverage is accepted for it. Elderly parents in their 80’s and 90’s could be eligible, but they would have to pay more for more benefits-restrictive policies.
- There is no medical exam or interview necessary for this kind of coverage.
- Your premium payments are level for the life of the policy, meaning that whatever your set premium rate, it will never rise.
- This kind of coverage can build cash value to borrow against.
Senior Term Life Insurance
- Term life insurance is a form of whole life insurance that is bought in annual or multi-annual temporary terms of coverage.
- You can buy term life insurance coverage for 1 year, 2 years, 6 years or 30 years.
- This type of coverage is much more affordable to buy than whole life insurance because it is temporary while whole life insurance is more expensive.
- A form of this life insurance for elderly people can be designed for purchase. Your insurance agent can sell you a senior term life insurance policy at an affordable rate for 10 to 15 years with a quality benefits package.
- If preferred, term life insurance policies are highly adaptable and modifiable so that they can be changed into different forms of insurance, like whole life or universal life, later on.
- There will be processing fees for this service and your premium rate will rise in price if you transform the policy.
- Not an ideal form of coverage if you are worried abound final expenses. Coverage could end before policyholders pass away, since this is a temporary form of life insurance that does not last a lifetime.
Burial Life Insurance
- This is a straight-to-the-point form of life insurance that is very affordable and solely exists to pay off the funeral expenses of the policyholder. Burial life insurance is also known as final expense life insurance.
- Funeral expenses can add up quickly. This form of life insurance takes the anxiety out of the process of financial preparing for one’s passing.
- This form of life insurance can accrue cash value, but that would depend on the policy, insurance company and exactly what you want to get out the policy besides final expense preparations.
- You can buy burial life insurance as a supplemental form of life insurance coverage to beef up an existing policy.
There was a time when, “the talk,” was an awkward conversation between middle-aged adults and pre-teens.
Nowadays, “the talk,” is the conversation that elderly parents need to have with their adult children and a good, independent life insurance agent about their financial, personal and estate needs before they pass away.
There is an emerging niche market to sell life insurance products to elderly parents. Coverage is out there if you know where to look and if you know what you want.
Make sure you have that difficult talk with your elderly parent or adult children today.
Every second counts.