Shawn Meaike is the CEO of Family First Life, an insurance agency providing a variety of coverage options to individuals and families throughout the United States. In the following article, Shawn Meaike explains why it is important to purchase life insurance for aging parents, as well as what plans are available to those who need it most.
Obtaining life insurance is an important investment, and doing so for loved ones makes it even more important to find the best possible options. Shawn Meaike explains that he is often asked, what ways are there to purchase life insurance for one’s parents?
According to Shawn Meaike, life insurance can be purchased for others in several ways, through both plans and policies. These include term policies for temporary coverage, permanent policies for the lifetime of parents, or final expense coverage for specific burial or funeral costs.
Shawn Meaike on Why Life Insurance is So Important
Shawn Meaike says that there are many reasons to invest in life insurance for one’s parents. It is not always the case that everyone invests in coverage at an early age, and discovering that parents are not covered may be a good reason to consider the following conditions and see if life insurance could come in handy:
- Care For Long Periods of Time – As we age, we inevitably need help caring for ourselves. With long term care insurance, a parent can be given access to high quality care, but not necessarily high fees that would result in financial burdens, thanks to life insurance coverage.
- Funeral Costs – Having a service for a loved one that celebrates their life is often expensive in all formats. Oftentimes, Shawn Meaike explains that people do not actually have the savings to pay for their own funerals, which leaves the financial burden on their family to worry about. Life insurance can immensely ease this burden.
- Dependent Parties – Some parents are still providing for dependent family members after they pass away. Without life insurance, this financial burden can either be transferred to others or cause hardship for the dependent. However, with life insurance, the family left behind can be assured of provisions, even after parents’ passing.
Now that Shawn Meaike has provided an explanation on the importance of coverage, below he dives into ways to purchase a plan for someone you love.
Ways to Purchase Insurance Plans
Figuring out what method to choose for getting life insurance for parents can be very difficult. After all, policies are difficult enough for individuals! Shawn Meaike provides a detailed guide on how to approach this often overwhelming, but necessary, task.
- Consider Age – No one likes to talk about their parents’ aging, but the truth is, some coverage options are dependent on knowing the physical and mental health status of the parent. Term life policies are sometimes only offered to those 65 or lower in age. Determining what the available options are is the first step toward getting coverage.
- Type of Coverage – As previously stated, life insurance for adults comes in a variety of options. Term life coverage may be less expensive, but it is not forever. Permanent insurance is great, especially for parents who are outwardly healthy but have a lot of expenses; however, it is in itself quite pricey. Shawn Meaike says that insurance agents are there to help clients determine what plan will provide the most benefit for their situation.
- Price – Remember, life insurance for those who are past young adult age, namely 30 years old, can be quite expensive. The coverage of parents can lead to hundreds of dollars in monthly payments if one springs for permanent coverage. Wisely consider how much the risk of death without life insurance would cost versus monthly payments on coverage, over time.
- Medical Concerns – Parents who are applying for life insurance must be underwritten medically at some point. If parents are healthy, they may be able to skip this process altogether, or simply go through a streamlined version. Otherwise, these can be complex and often include a physical exam. Look for guaranteed issue policies for serious conditions.
Remember, whether springing for permanent but pricey life insurance coverage, or temporary term coverage, or even final expense coverage, the decision to ensure the greater good for one’s parents should be carefully considered with all of the above steps in place.
To sum it all up, parental life insurance should be purchased due to the funeral arrangements, dependent needs, and other financial burdens that uninsured parents are likely to leave to loved ones after passing. With that said, before purchasing life insurance, carefully consider any medical concerns, prices, and even age while picking out a type of coverage.