Elderly Life Insurance is a Must Discussion at Home
(Kansas City, MO)
Elderly Life Insurance
A friend of mine has elderly parents in their 70's. She was shocked to find out that they had no life insurance.
Sure, they had a bit of retirement savings, some funds from pensions, and their own personal savings accounts, but she also found out that the cost of funerals, caskets, and burial plots could've taken a hefty chunk out of their savings.
Out of curiosity, while sitting with her I typed "elderly life insurance" into my browser the other day, wondering what kind of options older individuals might have, and discovered that in addition to be traditional whole life or term life policies, there is also something called a life insurance trust.
Elderly life insurance may be something that adult children of aging parents may find beneficial, especially if mom or dad owns a business. Sometimes, life insurance just doesn't cover an individual, but assets as well.
Life insurance trusts such as an irrevocable like insurance trust can be classified as not only an estate, but can be utilized as a planning tool come income tax time.
I was also surprised to find that a life insurance trust could prevent mom or dad's assets or estate from going into probate, as well as preserving and protecting their assets. It could be used as a source for estate liquidity.
The thing is, it's important to know about different types of life insurance that will protect assets, property, and hard work against probate, especially, as in the case of my friend, the parents don't have an active term or whole life insurance policy in effect.
After this I am planning on finding out from my mother what elderly life insurance coverage she has (if any) and if little or none we will begin that process asap..