Although the thought of your parents passing away is probably something you don’t want to think about, life insurance for your parents is something you should consider. Moreover, the time to do it is when they’re fairly healthy.Many children don’t look into life insurance for their parents and it doesn’t become a reality until the parent(s) suffer a major medical issue, or they pass away. When it comes to the point where they have a serious issue, coverage becomes too expensive; and when they suddenly pass away, the opportunity to plan disappears.There are four main reasons why you should consider life insurance for your parents now:
- Burial: Cremation and burial costs continue to rise in Canada and Canada Pension Plan coverage isn’t always enough to cover the cost and extras. The best aspect to this benefit is that while you’re grieving, you won’t have to worry about whether you can pay for the type of burial and funeral you want for your parent(s).
- Final expenses: A life insurance policy can pay for your parent’s final expenses, such as settling debts, leaving donations to charities that they have supported in their lifetime or flying out family members to attend the funeral. It is affordable to purchase a policy for both parents, particularly if they don’t smoke and are healthy.
- Estate Taxes: Chances are that if your parents have more cash than they need, the excess is probably in a RRSP account (which has a high tax consequence). If this money was used for a last-to-die policy, for example, then there wouldn’t be any taxes on the cash or the growth. Additionally, the value of the policy will go to the beneficiary with no probate fees or taxes.
- Legacy: As your parents get older, their desire to leave a legacy will increase – most people want to be remembered after their gone. A life insurance policy for you parents is a way for them to leave a financial gift for your children. They can use this gift to help pay for their education, travel the world, or as a down payment on a house.
It doesn’t matter if your parents are 51, or even 80, it is possible to buy affordable life insurance for your parents; provided they don’t have any major health problems (the cost will be less, the healthier they are).
All you have to decide is the type of life insurance to get; how much insurance you want; and where to find the best rates.
At Maple Bay Financial Corp., we understand that getting life insurance for your parents isn’t pleasant to talk about. However, we also know the importance of planning for the future. We make learning about and applying for life insurance simple.
You can find out everything you need to know by giving us a call at 1.888.498.5288.