When most people think about their parents, it’s easy to fall back to those childhood feelings where your parents were timeless and indestructible, even as we grow into adults and become more like them. Growing up, you likely thought your parents would be around forever. The harder it is to imagine a world without them in it, the less likely we are to prepare for what we know is inevitable.
Most people don’t like to talk about the inevitable here, but preparing and planning for it will make life easier all around. Part of being in the insurance and financial planning industry has afforded us with the not-so pleasant experience of dealing with what happens when people don’t prepare accordingly. Often times, it takes a worse-case scenario to spur people into discussing plans for care and insurance with their parents or elderly loved ones, and by then it can be too late to prevent financial problems. The last thing any parent would want is for their children to have added stress or anxiety on an already difficult situation. This is why it is important to prepare and make sure everything is in order beforehand. We cannot stress enough how crucial it is to sit down with your parents and have a conversation about their insurance and relevant finances.
There are a few things that are important to keep in mind when entertaining this conversation. Firstly, there are multiple types of coverage that can be put in place to plan for end-of-life costs. When factoring in funeral services, burial plots and headstones, funerals can cost anywhere from $15,000 to $25,000. Secondly, there are various situations that can play out where it will be beneficial to both yourselves and your parents if planned and prepared for – tax obligations and long term care routes to name a couple.
Discussing end of life options can be difficult, but is still much less difficult than scrambling to deal with financial issues immediately following the loss of a loved one. Equally vital to know when someone passes is the tax obligations they may leave behind, especially regarding their estate, and who would act best as their executor. If being the executor is something you decide to take on, insurance can help to cover any costs, just as it can assist in the costs associated with funeral arrangements.
Life insurance is commonly considered and addressed by families and family members, but a lot of people neglect planning ahead for long-term care, which can actually be more costly than anything else. Insurance for long-term care is a crucial option to consider in any discussions with your parents. Around 70% of individuals require long-term care at some point in their lifetime, and the costs of assisted living and nursing homes can be tremendous. Having insurance prepared before major health issues occur can offset many of those tremendous costs. These issues may seem far off in the future when you think about them, just as everyone hopes that they are. However, the more you delay the larger the chances of something unexpected occurring becomes, just as those same delays make it harder when it does happen.
It is always a good idea to prepare and plan ahead.