Insurance for older parents?

Question

We are older parents.. 50 and 57 with a 4 year old son. What types of insurances and other financial precautions do we need to take to ensure that he is well provided for? We are not legally married,dad has military pension. Neither of us has had a will drawn up yet. We do have other family members who can care for our son if needed. Any ideas or further info needed? Only helpful, supportive answers needed. Many thanks.

Answer 1

You should make plans now for your estate and the guardianship of your children. Life insurance is a good idea too, because if one of you dies, the other might not be able to meet expenses on their own. The idea behind life insurance is to help your dependents cope with the sudden loss of income if you die prematurely. To get the best kind of insurance at your age, speak with a broker. A broker works with several companies and can determine the best coverage and price. It will save you tons of time in research. To find a broker in your area, log onto a website like http://www.lifeinsurancewiz.com and fill out a form requesting a free quote.

Answer 2

You should speak to an estate planning professional.

A Will is a good thing to have, but it may not be the best option.  1) they are public knowledge and 2) they are contestable in court.  If someone happens to be reading the newspaper and sees something about you having a Will when you pass away they can show up when they are going through the Will and say "She told me she was going to give me 25% of her estate because I was sucha  good neighbor"  and it would go to the courts.  They might not win, but it will cost money to fight it in court when that money should rightfully be going to your benefiary.  A family trust may be an option to look at depending on how big of an estate you have.

A Will is better than nothing and if it's a small estate it's probably sufficient.  It will also dictate what happens to your son if you both pass away at the same time.  You mentioned you have "family members who can care", but do they know that's the plan?  My girlfriends parents died when she was 14 and it was assumed that their aunts and uncles would take care of them, but they couldn't afford it, so she went to foster homes.  As above, this stuff can be contestable if it's not a solid plan....If you both pass away, who will take care of your son?  It's easy to say "neighbour Jane will, I'm sure"  What about your sons Aunt Betty, that he spends time with on weekends that has grown attached to him?  What if she wants custody?  Make sure you have something documented at least.  Legal battles while greiving is never something someone should have to go through.

If you do a Will, do it through a lawyer...Do-It-Yourself kits are cheap, but they aren't always good...One of my colleagues clients Will stated "I would like my estate divided equally between my children"  After his death they found out he had an illegitimate son (again...read the paper, contested the will) and the estate was divided up 4 ways instead of the 3 ways that he actually intended, becuase of a simple mistake like that.  Spend the extra $100 and do it right.

As for the types of insurance.  It depends on your budget and what exactly you want it for.  If you want it to make sure your son is taken care of until he is old neough to do it on his own, buy 15 or 20 year Term Insurance...it's meant for a temporary need and will expire eventually.  IF you want to use it to make sure your funeral costs and estate taxes are taken care of, buy whole life or universal life insurance....it's meant for perminent needs and will last the rest of your life.

One of other type of insurance you may want to consider is Long Term Care insurance.  This is an insurance that will make sure if either of you is unable to perform the daily functions of life, you will be paid a benefit to hire help to take care of you.  It's similar to a disability insurance, only it's not attached to your work or income.  The reason this is important is as the Baby Boomers age, there may be increased demand on the health care system so you may need to pay more for things that you don't now becuase of the demand.  Also, by having the option to hire someone to care for you will save a lot of dignity.  No 24 year old wants to have to sponge bath their 77 year old parent and no 77 year old parent want to be sponge bathed by their kid.

If you consult a lisensed estate planning specialist they will be able to create a plan for you that will cover all the potential holes or gaps.  If you can't find an estate planning specialist contact a certified financial planner/advisor and they should be able to guide you in the right direction.

Answer 3

As a general rule couples with a child should have life insurance 20  times what their annual income to sufficiently replace loss of income of a bread winner and to maintain lifestyle and college plans.

Answer 4

You need to speak with a qualified financial advisor.

You definately need a WILL.

You need insurance.  Term is always the best way to go.  However, at your ages, it will become more expensive.

You also need to make sure you have investments, that way if you do die, you'll be covered by an insurance policy for the death benefit, and you'll leave a little savings for your child.  This can be turned into a college fund for him/her if you wish...THis can be done through a will.  Whoever is 50 in your household can get a longer term policy, which will be beneficial.

Answer 5

you can call on 9870004945

Answer 6

You urgently need wills and you urgently need to designate guardians for your child in the event of your deaths.  Consult an estate lawyer - don't try to do it yourself, especially since you are not married.

Answer 7

Cassie, I cannot answer all of your questions, but i can offer some advice.  When my wife and i bought our life insurance many years ago, it was more than enough to bury us, Since then, prices have risen considerably. NOW it is NOT enough to bury us. The advice?  Buy more than you need, If everything goes as it HAS been going, it will be enough when the time comes. I had to learn it the hard way. I hope you don`t plan on dying soon. Your boy may be married  when you pass on. I am 84 and have no thoughts on dying right away. Gotta wait till prices come down. lol