INSURE YOUR PARENTS

Over the years we have constantly discussed buying sufficient amounts of life insurance coverage for yourself and members of your family. There is another group of people we do not ordinarily think of when purchasing life insurance, our parents.

I realize this can be a very sticky subject for many of us to bring up to our parents. Likewise, many parents would find it hard to discuss this subject with their adult children. Let me try to put this into the proper context.

People do not own enough life insurance for many reasons. Unfortunately for many senior citizens, they do not own enough life insurance for final expenses due to their inability to afford the premiums. Living on a fixed income, maintaining their house, paying medical bills for prescriptions and doctor visits, etc. takes up most or all of their monthly income. They would like to have a sufficient amount of life insurance to cover funeral costs and final expenses, but they simply cannot afford it.

As an example, a $5,000 20 Pay Life plan for a woman age 75 costs $521.55 per year or $46.94 per month. To you or me, payments of less than $50 per month is no big deal. For some of our parents, they just do not have that extra $50 to spend each month. And through pride and their own dignity, they will not ask their children for money to pay their bills.

So, it is up to their adult children to ask whether their parents have sufficient life insurance to cover their funeral and final expenses. Listen carefully to your parents answer. Some have adequate savings and will instruct you to use these funds for these expenses. Some have small paid up life insurance policies with death benefits of only $250 or $500. Some do not believe in life insurance. Some think they are too old to buy life insurance. Some have already prepaid the funeral home and made their arrangements. And some will say that it would be beneficial to the family if they had more life insurance.

You will never know unless you ask. As a matter of fact, it is a good idea for adult children and their elderly parents to discuss a number of financial planning questions. Only through open and frank discussions can your parents’ wishes be fulfilled. Here is a message for the parents. I am sure you will always think of your children as "the kids" even though they themselves have reached middle age. Smart financial planning on your part means you should discuss and inform your adult children about your wishes.

PRCUA can issue life insurance through age 80 and we are more than willing to help in every way possible. Contact your favorite agent or our office for more information on purchasing additional life insurance to meet your final expense needs. Your entire family will benefit by your action.