Death, a tough but necessary topic to discuss
Anyone who has lost a loved one recognizes how difficult loss can be. This emotional occurrence can be overwhelming. Without financial preparedness, loved ones may face unneeded financial burdens as well. Advanced planning is one of the most loving measures a parent can take on behalf of their children. Purchasing a life insurance policy may be one of the most important decisions a parent will ever make.
Discussions concerning end of life arrangements and wishes offer an extreme peace of mind for children and extended family members. Share your thoughts and wishes concerning your final arrangement plans. Disclose insurance policies and their locations along with any other pertinent documents. Carrying out the arrangements will be uncomplicated and relieve unnecessary anxiety throughout this emotionally charged period. The planning and purchasing of life insurance before childbearing or while the children are young is the optimum time to begin.
Nevertheless, it is never too late to plan for end of life issues. In fact, today more seniors are investing in elderly life insurance policies, ensuring the children are not left with their funeral expenses. Because the baby boomer generation is living longer and often remains in good health well into their nineties, savings can be virtually used up. The older and wiser parents realize this and look into additional coverage, including those who have planned early.
Burial Life Insurance
Final Expense Life Insurance is also known as Burial Life Insurance. This type of plan is designed to assist in paying the end-of-life expenses and debts. The average funeral cost is between $5,000-10,000, and can be upwards of $20,000 in some cases. Other expenses may also be incurred towards the end of life. Most parents do not want to burden their children with such costs. Final Expense Life Insurance policies generally assist with funeral expenses, health and Hospice bills, probate and legal fees, and outstanding debts such a mortgage or car loan. These policies provide a tax-free payout to the designated beneficiaries to help offset or pay the expenses in full. Did you know funeral homes usually require payment within 48 hours?
No Medical Exam Life Insurance
Generally, medical exams are required to verify the state of health and offer the lowest possible rates available. For those who are uncomfortable with the idea of medial exams, purchasing no exam life insurance could be the answer. Coverage is limited to $350,000 generally up to twenty years. These policies most times are effective within 48 hours. The drawbacks of no medical exam life insurance include the $350,000 benefit limit, higher premiums, and no preferred risk classes are available. Additionally, at older ages some companies may not offer 20 and 30 year terms.
Another way retired parents are planning is through Medicare resources. Medicare Parts A and B pay about 80% of medical expenses and medically necessary services. Supplemental Medicare policies, also known as Mediplans, provide coverage for gaps that may occur in Medicare coverage. In end of life situations, this coverage eliminates medical financial burdens.
You have the time today. Though no one likes to reflect upon death, take the time to free your family from troublesome concerns and undue emotional stress. By discussing and planning, you’ve made the choices in consultation with your family. Enjoy the exceptional internal peace comes from knowing you have alleviated your children from additional emotional grief and overspending.
- Midlife Issues – Understanding Medicare (asiteforwomen.com)
- what to wear: non-black to a funeral (bizchickblogs.com)