Does anyone have a life insurance policy on a parent?

Not sure where this would go -- but was curious if anyone has a life insurance policy on a parent? DH and I were talking about this, and worry about expenses that might be incurred with my MIL if anything happened to her. She has absolutely no savings and no life insurance at all and never has had any.

I know I've seen those commercials for Colonial Penn guaranteed insurance, but other than that, was curious about other affordable options that don't ask medical questions (she's 62 and was a smoker for 40 years), and won't be too expensive as my DH and I would be the ones who have to pay for it.

Any info would be appreciated!

Re: Does anyone have a life insurance policy on a parent?

i don't have an answer, but your question got me thinking.

i posted it on the total money makeover message board to see what the number crunchers say. when they reply, i'll let you know what they say.

in the meantime, i'll be interested to see what LIFers say on the subject

Re: Does anyone have a life insurance policy on a parent?

It sounds like Long Term Care insurance is more what you need. This would provide coverage for various needs & services she may need in advancing years. Coverage could include in home care, physical therapy, nursing care, etc.

Here's a link to the Long Term Care National Advisory Center for some basic information but I would recommend meeting with an insurance broker to get a full range of your options.

You may also want to meet with an estate/elder care attorney so that all of her assets are set up in a way to maximize benefits she could be entitled to in the future.

Good luck!

Re: Does anyone have a life insurance policy on a parent?

I would look into, nowadays it costs around $10k to bury someone between funeral and plot costs. Note: this is not a fancy funeral either. So if you cant afford that and your MIL has no money life insurance would be a smart move.

Message edited 12/9/2009 9:24:09 AM.

Re: Does anyone have a life insurance policy on a parent?

Thanks...DH and I really can't afford much, and I know that long term care insurance might be better, but its hard enough making ends meet on our own, it is quite frustrating thinking about paying for something that no one will help us with at all. (His brothers are useless!)

Libby--would very much be interested in any info from your board!

Re: Does anyone have a life insurance policy on a parent?

I would get a minimal life insurance policy for final expenses.

If you are concerned about if she needs nursing home care or long term care then look into a nursing home or long term care policy.

If she is really broke she will qualify for medicaid if she needs a nursing home down the road.

You should try to meet with an elder care attorney or an insurance specialist.

Keep in mind that many insurance agents will try to sell you stuff you may not need so that's why an attorney is a good idea.

I did that for my brother.

Also, a will and health care proxy is a must!

Message edited 12/9/2009 10:08:18 AM.

Re: Does anyone have a life insurance policy on a parent?

A final expense policy that covers funeral expenses and would not reqire a medical.

Re: Does anyone have a life insurance policy on a parent?

Re: Does anyone have a life insurance policy on a parent?

Thanks everyone -- at this point I think we just want a policy to cover funeral costs if she were to pass away.

I'm sure she would be able to qualify for aid from the state if she did need some type of health care facility, right now she's okay and not sick at all. I was just starting to think about what might happen when she retires and passed away, how the heck would we pay for a funeral.

As much as I would love to purchase long term care for her of some type, I know that we just can not afford it, it would be quite $$ given her age and her long history of smoking.

I didn't think about the health care proxy at all -- she is technically still married to her husband, even though they've been separated for 20 years, I wonder if we would be able to make DH and I her health care proxies even though she's still married?

Re: Does anyone have a life insurance policy on a parent?