Life Insurance for Parents? Is it Prudent?
As we prepare to turn the calendar page at year’s end, and commence a new chapter at the opening of a new decade, life insurance serves many families as the financial binding in the “book of life,” connecting estates and generations.
A controversial question can arise: Should children consider life insurance for their eldely parents, for the eventuality of their passing, so that a sum of money could be left for their children and grandchildren?
The question has both financial and familial repercussions.
Economically, a grandparent who is say, age 65, may be facing 20 years or more of premiums that are costlier at an advanced age. Children might prefer to set money aside in the event a parent cannot care for themselves, such as for healthcare or long term living assistance.
Besides the budget, an essential question is how does the elder parent feel about it?
The opportunity could be viewed the same way as taking the policy out for oneself, except that the the children are there to help pay for it. Assuming eligibility for insurance, the arrangement is an equitable one since the family will be the ones who will receive the insurance benefit eventually.
So long as the motivation is not to take out a policy solely for monetary gain, any moral question is averted.
The primary purpose of life insurance to provide for family who can’t adequately cover themselves. Assuming the children are all on their own two feet financially, it may not be necessary to create a death benefit for an elderly parent, but for thoser who can afford this form of estate planning, the option may be sound.
What’s your view on life insurance for parents?
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