Life Insurance For Your Adult Child
There comes a time in each parent’s life when that child becomes an adult and is ready to fly the coop. It deserves a full financial plan to help you take care of your aging years. Your children are financially independent once they move out, get married, and have a child of their own, but there is always a risk that they might need financial help later on.
If you die, the money from life insurance policy can be credited towards your children’s expenses that they may incur as adults, e.g. taking care of your aging years. Life insurance for your adult child can help your child and grandchildren pay off some of their mounting education debts.
Life insurance for parents should have the same financial goals as life insurance for kids: to help them handle the financial responsibility of raising an unexpected child. Life insurance for adults is also known as adult coverage, and can be bought as single life or joint life.
According to the Council for Disability Awareness, disability rates for working-age adults are higher for younger and middle-aged adults compared to older age adults. By the time a working-age adult reaches 60 years old, their disability rate dramatically decreases. This is why a working-age adult should consider purchasing short-term disability insurance.
Deciding How Large of a Policy you need
When deciding how large of a policy to purchase with a life insurance company, there are a variety of factors you should take into account.
There are no standard rules for how much life insurance to buy. It’s recommended that you get as large a policy as you can afford, up to 20 times your annual income (providing it’s affordable).
When purchasing a life insurance policy for the primary purpose of covering outstanding debts, make sure to only check the box that says “death benefit. ” There are other options you can take advantage of, such as a payment options feature or disability coverage, but these are only helpful when you’re alive.
In addition, there are a number of factors you should take into account when deciding how large of a life insurance policy to purchase. These include:
Term Life For Parents
A good life insurance policy can provide real peace of mind for the future of parents, both financially and emotionally. But what are the best types of policies to choose? In most cases, term life offers the most cost effective solution. But that’s only true if you choose the right coverage amount and duration.
Getting Lower Life Insurance Rates
The first part of this blog is going to focus on life insurance for parents, explaining some special considerations involved with insuring parents compared with other life insurance applicants. The second part of the blog will focus on life insurance for parents in different age groups.
When considering life insurance for a parent, you will need to consider whether the insurance can become the death benefit for multiple payouts. A single life insurance policy typically covers all family members, including children, grandchildren, nieces and nephews, spouses, parents, and perhaps even ineligible adult children. Parents are generally considered last on the life insurance beneficiary list and their death benefits are likely to be part of the death benefits for other family members. There are exceptions, however.
The supplemental life insurance needs of parents or elderly parents can be satisfied with a reduced death benefit if Social Security death benefits or other retirement income would become the family’s not-so-secret weapon against the cost of expensive nursing home care, caregiving, and medical needs.
Life Insurance for Parents
If there is no financial protection in place, the addition of a member to a family is only good news if it happens to be a newborn. An unexpected death of a parent or parent figure for a child is enough to turn the entire world upside down for the whole family … and add extra challenges and responsibilities for the surviving parent(s).
Losing a loved one in an accident or unexpected death can be the source of tremendous emotional and financial loss for the family. Life insurance for parents in this situation makes a lot of sense.
Parents are often the main supporters of the family financially. In any family, one or both of them might remain the primary breadwinners. Thus, if a death takes place, it’s likely there will be a financial loss in the family. Additionally, if a father’s death occurs, the mother might have to take on a job to keep the family afloat.
In many cases, the death of the father has a severe fiscal impact on the family. Not only is a source of income lost, but also a worker and a breadwinner. A dead parent can also trigger mental and emotional stress for the surviving parent and other family members … if the deceased wasn’t prepared for the financial implications of his or her death.